US and India Finalize First Phase of Trade Deal Ahead of Rubio Visit

The first phase of a trade deal between India and the United States has been finalized and is now going through legal drafting, India’s trade secretary said Thursday, according to Reuters.

Rajesh Agrawal told a media briefing on trade data that negotiations with Washington were moving in the right direction. He said both sides aim to conclude and sign the deal as soon as possible, with India seeking preferential access to the American market and greater stability in tariffs.

Commerce and Industry Minister Piyush Goyal echoed the announcement at a separate event, saying the first tranche had been finalized and would take effect once India secures a competitive edge over rival exporters. The Hindu BusinessLine reported that he named competitors such as Vietnam, Indonesia and Bangladesh.

Fresh trade data showed India’s exports to the United States rose 11.1 percent to 50.81 billion dollars in the April through September period, while imports from the United States jumped 26 percent to 32.33 billion dollars, narrowing India’s trade surplus to 18.48 billion dollars.

The announcement came two days before US Secretary of State Marco Rubio travels to India and Uzbekistan from Oct. 17 to 22. He is expected to meet government and business leaders to discuss energy cooperation, commercial investment and broader economic ties.

The deal effort follows a rocky year for US-India relations. President Donald Trump has repeatedly claimed credit for brokering an India-Pakistan ceasefire, and a US military strike on a ship off Oman killed three Indian seafarers.

Ajay Srivastava of the Global Trade Research Initiative told Reuters that Washington’s decision to buy Russian diesel raised hopes India would avoid tariffs over its Russian oil purchases. He added that the United States could still use the threat of duties to press India into an unequal agreement.