2 min readUpdated: Feb 5, 2026 03:46 PM IST
Commerce Minister Piyush Goyal Thursday said that India and the US will formally sign the first tranche of the trade agreement by mid-March and would release the joint statement in the next 4 to 5 days. Following the joint statement, the US tariffs will come down to 18 per cent via a White House executive order, Goyal said.
“All US trade deals have had joint statements. The joint statement related to the India-US agreement will come into effect in 4-5 days. It can be early too. Once the joint statement is there, it has to be converted into a legal agreement. We are targeting mid-March to sign the legal agreement. That will give us the authority to reduce tariffs on our side. Because their tariffs are executive tariffs. Our tariffs are Most-Favoured-Nation (MFN) tariffs,” Rajesh Agrawal, Commerce Secretary.
India has committed to purchase $100 billion worth of American products annually for five years, which would largely include aircraft, technology items, precious metals, oil, nuclear products, and agricultural goods. New Delhi imported $45.62 billion worth of American goods, while exports to the US stood at $86.51 billion in FY25.
Under the trade deal agreed on Monday, Washington lowered tariffs on India to 18% from 50% that were imposed on August 27, and US President Donald Trump had said India will buy over $500-billion worth of American energy, technology, agricultural products, and coal, among other products.
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