India-US trade deal to be signed in March: What you need to know

India and the United States expect to sign a formal agreement on their trade deal in March, with New Delhi set to reduce tariffs on US goods once the legal document is signed, Union minister of commerce and industry Piyush Goyal said on Thursday.

The two sides will issue a joint statement in the next four to five days, after which Washington will reduce tariffs on Indian goods, Goyal said.

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“The India-US trade deal reflects the shared commitment of both nations to deepen economic engagement. Strong people-to-people and business ties will continue to play an important role in strengthening India–US ties for mutual growth and prosperity,” Goyal said.

“Stronger economic cooperation under the #IndiaUSTradeDeal will significantly benefit businesses in both nations. With tariff reductions, India will gain enhanced market access and improved export competitiveness, unlocking new growth avenues for our industries,” he added.

US president Donald Trump announced a trade deal with India on Monday that cuts American tariffs on Indian goods to 18 per cent from 50 per cent in exchange for India halting purchases of Russian oil and reducing trade barriers.

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Trump said India had agreed to buy more American products, with total purchases rising to as much as $500 billion across sectors including energy, coal, technology, agriculture and other goods.

According to a government official, India has agreed to step up purchases of petroleum, defence goods and aircraft from the United States, while partly opening access to its closely protected agriculture sector, as the two countries move to ease trade tensions that had persisted for months.

Trump and Modi last spoke by phone in October 2025. The two leaders had agreed at a meeting in February last year to finalise the first tranche of a bilateral trade agreement by the autumn.

ALSO READ: Trade deal sees India buy more US oil, defence goods and aircraft

Although several rounds of negotiations were held, progress stalled after Trump imposed 50 per cent tariffs on Indian goods, including 25 per cent punitive tariffs linked to India’s procurement of Russian crude oil.

The latest phone conversation took place on a day when external affairs minister S Jaishankar travelled to Washington DC.

Officials said India now faces lower tariffs compared with competing export economies, citing 19 per cent tariffs on Indonesia, 20 per cent on Vietnam, 20 per cent on Bangladesh and 34 per cent on China.

(With inputs from agencies)