Piyush Goyal said discussions between New Delhi and Washington were progressing steadily and that the initial phase of the agreement would mark an important step in strengthening economic ties between the two countries.
Details of the first tranche were not immediately disclosed.
Goyal said the joint agreement would be signed virtually, adding that while the formal agreement would take another 30 to 45 days to conclude, early movement would allow India to seek additional concessions later.
“We want to get the agreement as fast as we can, because we can get more concessions after that,” Goyal said.
Highlighting the scale of commercial engagement, the trade minister said aircraft demand and orders alone were estimated at $70–80 billion and would form a significant part of India’s purchases from the United States.
A senior trade ministry official said India’s total procurement over the next five years was projected to grow to around $2 trillion, of which the United States was expected to supply about $500 billion under the broader trade framework.
Trade think tank GTRI founder Ajay Srivastava told ET Online that the target was “an impossible goal,” adding that “nothing beyond $100 billion a year is feasible.”
US companies earn over $60 billion from the Indian market, while Indian students spend around $25 billion annually on education in the United States.
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Goyal said tariffs on India would be reduced to 18 percent through an executive order once the joint statement is signed, signalling near-term relief on trade barriers.
The proposed agreement is seen as a key step in deepening India–U.S. economic ties, with both sides looking to expand market access and scale up strategic commercial cooperation.
Commerce Secretary Rajesh Agrawal said the joint statement would have to be converted into a legally binding agreement before any tariff changes could take effect. “Once the joint statement is issued, it needs to be converted into a legal agreement. We are targeting March for this agreement to come into force,” he said.
Agrawal explained that while U.S. tariffs were executive in nature, India’s tariffs followed the Most Favoured Nation (MFN) framework and could be reduced only after the legal agreement was signed. “This legal agreement will give us the authority to reduce our tariffs,” he said.
At present, Indian goods attract a 25 per cent reciprocal tariff as well as an additional 25 per cent tariff linked to purchases of Russian crude oil.
The commerce secretary said the joint statement would be followed by an exhaustive legal agreement laying out the detailed framework of the deal.
Trade Minister Piyush Goyal also clarified that the pact did not include any investment commitments.