India-US trade deal ‘done and dusted’, says Piyush Goyal; what’s stopping the execution?

The proposed trade pact between India and the US is "done and dusted", but its execution is awaiting a competitive advantage for Indian exporters over its competitors, Commerce and Industry Minister Piyush Goyal has said.

India and the US in February announced finalisation of the framework for the first phase of the bilateral trade agreement (BTA).

However, subsequent changes in the US tariff regime led to further negotiations.

Goyal's comments suggest that the broad contours of the bilateral trade agreement have been settled, but the two sides are still working on the tariff terms that will determine how Indian goods compete with products from other countries in the US market.

"We have to find the right comparable competitive advantage over our competitors, so that we can quickly execute the agreement," Goyal said on Thursday.

He was speaking ahead of his visit to the US for the G20 Trade Ministerial in Milwaukee, Wisconsin, from September 30 to October 1.

Goyal is also scheduled to hold a bilateral meeting with US Trade Representative Jamieson Greer, where progress on the trade negotiations is expected to figure.

The key issue now is to ensure that Indian exporters do not lose out to competing suppliers in the US because of differences in tariff treatment.

Countries such as Bangladesh, Sri Lanka, Vietnam, Thailand, Cambodia, Indonesia and Malaysia compete with India in several US markets.

A preferential tariff arrangement for Indian goods vis-a-vis these competitors would improve their price competitiveness.

The US is India's largest export destination and its second-largest trading partner.

India's goods exports to the US were valued at about $87.3 billion in 2025, while bilateral goods trade was close to $141 billion.

In July, the US administration imposed a 10% Section 301 tariff on goods from India following an investigation related to forced-labour import restrictions.

The US Trade Representative said India was among economies subject to the 10% rate after taking steps relating to forced-labour prohibitions.

Other economies facing the 10% Section 301 rate include Bangladesh, Canada, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka and the UK, while a 12.5% rate was set for several other economies covered by the investigation.

This means the final India-US arrangement needs to account for the tariff treatment of competing exporters, particularly in sectors where Indian products face direct competition from countries with different levels of access to the US market.

Goyal had earlier indicated that India would not move ahead with the agreement until a mechanism for securing such a competitive advantage was finalised.

"I have categorically and on several occasions expressed the confidence that what we have finalised with the US as the first tranche of the bilateral trade agreement... will come into operation as soon as the United States is able to ensure that we get a comparative advantage over our competitors, the countries in our neighbourhood, the countries in the ASEAN region and other countries with whom we compete," Goyal told reporters in July.

The latest comments indicate that the negotiations are therefore less about whether there will be an agreement and more about the precise tariff architecture under which it will operate.

Meanwhile, US President Donald Trump on September 18 signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving the US president powers to impose tariffs of up to 100% on countries buying Russian energy.

India has said it is studying the details and implications of the legislation.

Goyal had earlier said that the government would examine the provisions before commenting on their impact.