India secures best trade deal with US in Asia, says Piyush Goyal

India has achieved the strongest trade agreement with the United States compared to other Asian countries, according to Commerce and Industry Minister Piyush Goyal. He underscored the importance of the bilateral ties and the scale of the US economy. The minister noted India's efforts to expand its global trade partnerships.

Commerce and Industry Minister Piyush Goyal stated that India has secured the best trade deal with the United States among its Asian competitors. Speaking on the matter, he highlighted the robust relationship between India and the US, describing it as a key pillar of economic cooperation.

Goyal emphasized the significance of engaging with the US, pointing out that its economy remains the largest in the world and cannot be ignored in any global strategy. This perspective comes as India continues to prioritize international trade links to bolster its economic position.

The minister's comments reflect India's ongoing push to build a comprehensive network of trade partnerships worldwide. While specifics of the deal were not detailed in his remarks, the emphasis was on the comparative advantage India holds in its US agreement over other regional players.

This development underscores the deepening economic interdependence between the two nations, with the US serving as a vital partner for India's trade ambitions.

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Indian and US diplomats shake hands over trade agreement documents amid flags and trade symbols, illustrating the interim framework announcement.
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India and US outline framework for interim trade agreement

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On February 6, India and the US released a joint statement outlining the framework for an interim trade agreement under the proposed Bilateral Trade Agreement. The framework focuses on US market access, regulatory concessions, and strategic alignment, but concerns have been raised over the lack of balance and reciprocity. Experts warn it could impact India's economic autonomy.

India and the United States have agreed to reduce US tariffs on Indian exports from 50% to 18% under a bilateral trade deal, boosting India's competitiveness. Commerce Minister Piyush Goyal assured Parliament that agriculture and dairy sectors are fully protected. The agreement removes punitive tariffs linked to India's Russian oil purchases.

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Commerce Minister Piyush Goyal defended the newly concluded India-EU free trade agreement against domestic criticism, emphasizing its benefits for economic growth. The deal addresses key issues like carbon tariffs and mobility for professionals. However, US Treasury Secretary Scott Bessent expressed disappointment, accusing Europe of prioritizing trade over support for Ukraine.

In January 2026, India and the European Union announced the conclusion of a comprehensive free trade agreement after 19 years of negotiations. The deal signals deeper economic integration and strategic partnership amid global trade uncertainties, including US tariffs. It provides India preferential market access while addressing long-standing differences on tariffs and standards.

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Former Finance Minister P Chidambaram has described the joint statement issued by the US and India on February 6, 2026, as unequal and marked by American audacity. He argues that the framework lacks true reciprocity, with India making several commitments. The statement includes India's pledges to reduce tariffs on US goods and purchase $500 billion worth of American products over five years.

Around 50 government officials, researchers, and others from Japan and India gathered in New Delhi for a meeting to discuss promoting economic security cooperation between the two countries. Participants confirmed the importance of establishing supply chains spanning both nations for strategic materials like semiconductors and rare earth minerals. Both countries face the shared challenge of diversifying supply chains amid China's export restrictions on rare earths and the protectionist high-tariff policies of U.S. President Donald Trump's administration.

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India and Oman are set to sign a free trade agreement on Wednesday, marking Oman's first such deal in nearly 17 years since its pact with the United States. The agreement will strengthen bilateral strategic ties, covering goods, services, investments, green energy, and net-zero goals.

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