India and the United States have finalized a framework trade agreement, with Commerce Secretary Rajesh Agrawal confirming on July 13, 2026, that the deal is ready for signing at the "right time." However, negotiations on India’s comparative advantage over competitors remain unresolved.
Framework deal awaits final terms
Agrawal stated at a press briefing that the framework deal is complete, but its signing depends on structuring preferential market access terms. "When you do a deal, you get preferential market access in India and India gets preferential market access in that market. These preferences are vis-a-vis some competitors," he explained.
Commerce Minister Piyush Goyal also addressed the trade deal on social media, noting productive discussions with USTR Jamieson Greer during his June visit to Delhi. Both sides reaffirmed their commitment to a balanced agreement delivering tangible benefits for businesses, farmers, workers, and consumers in both countries.
US trade investigations may not delay signing
The U.S. is conducting two separate trade investigations involving India: one on forced labour and another on surplus capacity exports. The forced labour probe is nearly complete, with a final report expected this month. A draft report proposed a 12.5% tariff on 54 countries, including India.
Agrawal indicated that these investigations would not necessarily delay the trade deal’s signing. "Whenever we sign it, all aspects of the trade relations will get addressed," he said, adding that pathways for resolving related issues could be established before or after the investigations conclude.
