India-US Trade Negotiations
The signing of the interim trade deal between India and the United States, initially anticipated for March 2026, may be postponed by several months due to new US investigations, according to multiple reports on March 15, 2026. As of March 15, 2026: The Indian Ministry of Commerce states that bilateral engagement is ongoing and has not stalled, with both countries working towards an agreement. The postponement follows a US Supreme Court ruling that invalidated President Trump's reciprocal tariffs and a recent 15% US tariff on goods from India. The deal, which aimed to provide India with zero-duty access for textiles to the US market, had seen India and the US finalize a framework agreement on February 12, 2026, reducing reciprocal tariffs on Indian goods to 18% and removing a 25% punitive duty.
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2026
14 updatesThe signing of the interim trade deal between India and the United States, initially anticipated for March, may be postponed by several months. This potential delay is attributed to new US investigations, according to multiple reports. The Indian Ministry of Commerce has stated that bilateral engagement is ongoing and has not stalled, with both countries working towards an agreement.
Negotiations for the India-US interim trade deal have been postponed, impacting the previously agreed March deadline. The postponement follows a US Supreme Court ruling that invalidated President Trump's reciprocal tariffs, necessitating an assessment of the implications for the agreement. The US has recently imposed a 15% tariff on goods from India, further complicating the situation.
India's negotiating team has postponed its visit to Washington, originally scheduled for February 23-25, to finalize the India-US trade deal. This decision follows the US Supreme Court's ruling that invalidated President Trump's reciprocal tariffs, introducing uncertainty and requiring an assessment of the implications for the agreement.
Commerce Minister Piyush Goyal announced on February 20, 2026, that the interim trade deal between India and the US is scheduled for signing in March and could become effective by April. Officials will meet from February 23 for three days to finalize the legal text of the agreement, which aims to provide India with zero-duty access for textiles to the US market.
India's chief negotiator for trade talks with the US, Darpan Jain, will lead a delegation to Washington next week to finalize the legal agreement for the India-US trade deal. The deal is likely to be signed in March, following the finalization of an interim trade agreement framework. Commerce Secretary Rajesh Agrawal confirmed that the joint statement outlining the agreement's contours has been signed, with virtual talks ongoing to translate these into a legal pact.
The India-US interim trade agreement framework is expected to be finalized by March, with officials actively working towards this deadline. An Indian delegation will visit the US to finalize the legal text of the agreement. This development follows discussions about zero-duty textile access for India, mirroring the recent agreement with Bangladesh.
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Commerce Minister Piyush Goyal assured that India will receive zero export-duty access to the US market for garments made using US-imported cotton yarn, mirroring benefits given to Bangladesh. He stated this will expand cotton demand and benefit Indian farmers. However, Congress leader Rahul Gandhi accused the government of cheating farmers and textile exporters, claiming the deal would severely damage these sectors.
India and the US have finalized a framework trade agreement, reducing reciprocal tariffs on Indian goods to 18% and removing a 25% punitive duty. Indian textile exporters will receive zero-duty access for garments made with US-origin cotton, mirroring concessions given to Bangladesh. The deal also ensures that 95% of India's agricultural produce is excluded from the agreement.
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Commerce Minister Piyush Goyal indicated that India is exploring a zero-duty arrangement with the US for textiles, similar to Bangladesh's deal. A formal agreement is expected by the end of March 2026. This initiative aims to address concerns that Bangladesh's preferential access could impact Indian exporters and to maintain India's competitive edge in the US market.
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The Commerce Ministry confirmed that India would receive yarn and cotton-related trade benefits similar to those extended to Bangladesh, potentially boosting textile and apparel exporters. Minister Piyush Goyal stated that domestic farmers' interests were safeguarded, with about 90-95% of farm products excluded from the broader trade arrangement. This development follows a US-Bangladesh joint statement on February 9, 2026, which announced tariff relief for Dhaka, including zero-duty access for garments made with US-origin cotton and man-made fibers.
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Indian Commerce Minister Piyush Goyal indicated that India may secure zero-duty textile access to the US, mirroring the tax relief granted to Bangladesh. He assured industry leaders that India would explore a similar arrangement, citing US tariff guidelines that allow zero-duty access for countries using US-origin raw materials. This move aims to ensure India's competitive position in the US textile market.
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Following India's trade deal with the US, Bangladesh secured a fresh trade agreement with Washington, granting zero reciprocal tariffs on specific textile and apparel goods, with a 19% reciprocal tariff compared to India's 18%. This development sent shares of Indian textile exporters tumbling, as the tariff differential narrowed significantly. The Bangladesh-US deal stipulated that the volume of duty-free textile and apparel products from Bangladesh would be linked to Dhaka's imports of US-produced cotton and man-made fiber textile inputs.
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Concerns arose that preferential provisions for Bangladesh in a new US-Bangladesh trade deal could diminish the competitive advantage India was expected to gain from its recent trade agreement with the US. The possibility of zero-tariff entry for certain Bangladeshi textile and apparel exports, subject to quotas based on US-origin cotton and man-made fiber inputs, moderated the optimism surrounding Indian exporters.
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The United States and India concluded a new trade pact, which included a significant reduction in US import tariffs on Indian textiles from 50% to 18%. This new rate was designed to provide a substantial price competitive advantage for Indian textiles in the US market, undercutting the standard 20% tariff applied to nations like Vietnam and Bangladesh. The agreement was hailed as a historic moment by the Confederation of Indian Textile Industry (CITI), with expectations of strong short-term growth and a long-term impact on global textile trade dynamics.
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2025
1 update
2025
1 updateThe Indian textile industry proposed a "zero-for-zero" trade agreement with the US, aiming to eliminate tariffs on textile and apparel trade between the two nations. This was seen as a way to increase India's share in the US apparel import market from 5.9% to 10% and potentially boost exports by US$6 billion over three years. The industry highlighted that such an agreement would create a level playing field against competitors like Bangladesh and Vietnam, who already benefit from favorable trade agreements with the US.
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