India, US trade deal close, but tariff advantage remains key condition: Piyush Goyal

India is nearing the conclusion of a trade agreement with the United States, but Commerce and Industry Minister Piyush Goyal has made it clear that New Delhi will move ahead only if the pact ensures a comparative tariff advantage for Indian exports over competing countries.

Speaking amid ongoing negotiations between the two countries, Goyal said India is "very close" to finalising the agreement. However, he stressed that Indian exporters must receive a level playing field and better market access compared to rival economies, particularly in Asia.

The minister's remarks come as trade talks between New Delhi and Washington enter a crucial phase ahead of a July deadline linked to temporary US tariff arrangements. India has been pushing for assurances that its products will enjoy competitive tariff treatment, especially when compared with exports from countries such as Vietnam and other ASEAN economies.

According to Goyal, India will not sign a trade pact that places its exporters at a disadvantage. He indicated that while substantial progress has been made in negotiations, tariff competitiveness remains a key outstanding issue.

Recent discussions gained momentum after US Trade Representative Jamieson Greer visited New Delhi for fresh rounds of negotiations with Indian officials. Both sides have reported progress towards an interim trade arrangement that could serve as the foundation for a broader bilateral trade agreement.

Trade talks have also been influenced by developments in the US, including legal challenges to tariff policies and ongoing investigations under Section 301 of the US Trade Act. These issues have complicated efforts to finalise the agreement despite broad consensus on expanding bilateral economic ties.

The US remains one of India's largest trading partners. Both countries have set an ambitious target of significantly expanding bilateral trade in the coming years, with negotiations focusing on tariffs, market access, regulatory barriers and sector-specific opportunities.

Officials from both sides have continued to express optimism about the negotiations. The US has described India as a key partner in emerging sectors such as artificial intelligence and advanced technologies, while India sees the trade agreement as an opportunity to strengthen export competitiveness and deepen economic cooperation with Washington.