Commerce Secretary Rajesh Agarawal confirmed in Mumbai on September 9, 2026, that the India-U.S. trade pact is 'more or less finalised' with only a few issues remaining under discussion. 'It will be signed at an appropriate time,' he said, adding that any trade deal must provide 'preferential market access' to both nations. The Secretary noted that India operates under most favoured nation (MFN) tariffs, while the U.S. applies executive tariffs, creating a need for a tailored framework to ensure mutual benefits.

The U.S. has imposed an additional 10% import duty on several countries, including India, under a Section 301 probe related to forced labour, effective since July 24, 2026. Despite these tariffs, India's merchandise exports to the U.S. grew 3% to $34.5 billion during April-July 2026-27, while imports rose 22.42% to $22.12 billion. Commerce Minister Piyush Goyal has stated that the Bilateral Trade Agreement (BTA) details will be announced once Washington offers preferential terms to India compared to its competitors.

Agarawal highlighted that the first phase of the India-U.S. pact was finalised in February, but changes in the U.S. tariff landscape have led to further negotiations. The Secretary mentioned that Commerce Minister Goyal will visit the U.S. in late September to attend the G-20 Trade Ministerial in Milwaukee and hold bilateral talks with USTR Jamieson Greer, with trade pact issues to be discussed. Agarawal also noted that the India-Chile Comprehensive Economic Partnership Agreement (CEPA) is in its final stages, with negotiations expected to conclude within the next two to three months.

Regarding the India-New Zealand Free Trade Agreement (FTA), Agarawal stated that the pact is expected to come into force in October, with a final date to be announced once it is approved. The two countries signed the agreement on April 27, 2026. On the BRICS meeting, Agarawal said over 2,000 business delegates from BRICS nations will attend, alongside more than 900 international delegates, creating an opportunity for new trade partnerships. When asked about Rupee-based trade discussions, Agarawal said such matters fall outside the domain of commerce.

The U.S. Section 301 tariffs and India's MFN rates have created a complex landscape for preferential access. While the pact is considered finalised, the exact timeline for signing remains uncertain. The Commerce Secretary's comments suggest that the deal is close to completion, but the U.S. is still working on its tariff architecture to ensure mutual benefits.

The situation remains unclear on the exact nature of the remaining issues and whether the U.S. will adjust its tariff policies to align with India's MFN rates. The delay in signing the pact may impact India's trade strategy, particularly as it seeks to expand its market access in the U.S. While the Commerce Secretary has provided a positive outlook, the lack of a U.S. response leaves some uncertainty about the final terms of the agreement. The upcoming G-20 Trade Ministerial in Milwaukee may provide further clarity on the status of the India-U.S. trade pact.