NEW DELHI (Web Desk) - India and the United States are expected to sign a formal trade agreement in March, Trade Minister Piyush Goyal announced on Thursday, providing the first official timeline for the deal’s adoption.
Goyal said the two countries will issue a joint statement within the next four to five days. Following this, Washington is expected to reduce duties on Indian exports to 18%, down from 50%.
In return, India will lower tariffs on American goods and commit to purchasing nearly $500 billion worth of US products over the next five years. This includes $70–80 billion in Boeing aircraft orders.
The agreement, announced earlier this week, was reached after US President Donald Trump reduced tariffs on Indian goods in exchange for New Delhi ending purchases of Russian oil, cutting trade barriers, and expanding imports from the US.
Goyal added that India plans to significantly increase purchases of US energy, aircraft, and semiconductor chips. He noted that aircraft-related orders, including engines and spare parts, could reach nearly $100 billion.
Indian markets reacted positively to the announcement, with stocks rallying as the deal eased uncertainty in ties between the two allies.
However, India’s main opposition party has demanded more transparency, particularly over concerns about market access for the agriculture sector. Officials said India will offer limited access while maintaining key protections.