New Delhi: An interim trade agreement between India and the United States is expected to come into force in April, Union Commerce and Industry Minister Piyush Goyal said on Friday, indicating progress on a limited pact that could pave the way for a comprehensive bilateral trade agreement.

Speaking about parallel negotiations, Goyal said India’s free trade agreements with the United Kingdom and Oman are also likely to be operational in April, while the agreement with New Zealand is expected to be implemented in September.

Legal text to be finalised in US

Indian and American negotiators are scheduled to meet in the United States from February 23 for three days to conclude the legal drafting of the interim pact. The talks aim to convert an agreed framework into a binding document.

Earlier this month, both governments issued a joint statement confirming that the broad contours of the interim trade framework had been settled. The understanding focuses on selective tariff reductions, expanding energy trade and strengthening overall economic engagement, while keeping space open for negotiations on a wider bilateral trade deal.

Tariff changes and market access

Under the proposed arrangement, both sides are expected to extend duty concessions on specified products. The United States has signalled a reduction in reciprocal tariffs on Indian goods from 25 per cent to 18 per cent. It has also withdrawn the 25 per cent punitive tariffs that were imposed on India over its imports of Russian crude oil.

A key element of the framework involves enhanced market access. India has agreed to procure USD 500 billion worth of American goods over five years. The list is expected to include oil and gas, coking coal, aircraft and aircraft components, precious metals and advanced technology products such as graphics processing units used in artificial intelligence and data centres.

In exchange, India will lower or remove tariffs on several US industrial and agricultural products, including dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.

Sensitive sectors and revised fact sheet

The United States will continue to levy an 18 per cent tariff on most Indian exports, including textiles, apparel, leather goods, footwear, plastics, organic chemicals, home decor, artisanal items and certain machinery. India is likely to secure relief on select aircraft and parts, along with a lower tariff quota for auto components. The status of generic pharmaceuticals will depend on the outcome of ongoing US tariff investigations.

Goyal said the framework creates new opportunities for Indian farmers, fishermen and micro, small and medium enterprises to tap into the USD 30 trillion American market.

In a later update, Washington revised its official fact sheet on the agreement. References to “certain pulses” were removed from the list of US goods eligible for tariff cuts. The earlier mention of India eliminating its digital services taxes was also dropped. The revised version states that India has committed to negotiate bilateral digital trade rules addressing discriminatory or burdensome practices.