India and US Fine-Tuning Bilateral Trade Agreement, Says Piyush Goyal

India and the United States have concluded most discussions regarding a proposed bilateral trade pact and are currently fine-tuning the agreement, Commerce and Industry Minister Piyush Goyal announced on Monday, October 26, 2026, during an official visit to the Netherlands, as reported by The Hindu and The Economic Times.

US and India Enter Final Phase of Trade Talks

Bilateral trade talks entered this final technical phase after American tariff changes necessitated renewed negotiations between Washington and New Delhi. The two nations previously announced the finalization of a framework for the first phase of the bilateral trade agreement back on February 7. Under that initial framework, the United States reduced tariffs on Indian goods from 50 percent down to 18 percent, according to Goyal’s statements at the time. Planned reductions to zero include generic pharmaceuticals, gems and diamonds, and aircraft parts once the interim agreement officially concludes.

In exchange, India agreed to eliminate or reduce duties on all American industrial goods, along with select agricultural and food products such as tree nuts, fruit, and dried distillers’ grains. India also outlined an intention to purchase $500 billion worth of US energy products, aircraft, aircraft parts, technology products, precious metals, and coking coal over a five-year window. Commitments also extend to increasing digital trade and expanding technology product flows, including GPUs utilized in data centers.

Diplomatic Engagements Preceding the Fine-Tuning Stage

The path to the current fine-tuning stage involved multiple high-level diplomatic exchanges throughout late 2026. Goyal met with US Trade Representative Jamieson Greer on October 1 on the sidelines of the G20 Trade Ministerial in Milwaukee, characterizing those discussions as productive. Following that meeting, a delegation led by Commerce Secretary Rajesh Agrawal held subsequent talks with American officials in Washington from October 15 to 17.

Addressing the India-Netherlands Business Forum in The Hague during his current trip, Goyal noted that India has successfully concluded nine free trade agreements over the past four and a half years. Alongside Dutch counterparts, the minister engaged in sector-specific roundtables focusing on agri-food and food processing, high technology and innovation, sustainability and renewable energy, and logistics and supply chain, which included a visit to the Port of Rotterdam on October 25.