India’s Commerce and Industry Minister Piyush Goyal announced that the country will secure a comparative advantage through a proposed trade agreement with the United States. This agreement is expected to provide India with preferential access to the US market, a development that is particularly relevant amid rising uncertainties in global trade due to ongoing conflicts in West Asia and Ukraine. Goyal made these statements during a press briefing late on Monday night, Indian time.

He indicated that discussions between India and the United States have progressed significantly, with most topics reportedly finalised. Goyal noted that efforts to establish a limited trade deal began in 2018 during President Donald Trump’s first term, but were halted under the Biden administration. The talks resumed last year following Trump’s return to office.

Goyal further mentioned that the concluded agreements and those currently under negotiation could provide India with preferential access to approximately $85 trillion of the global GDP, which is estimated at $115 trillion.

Progress on Other Trade Agreements

In response to inquiries regarding other trade agreements, Goyal stated that negotiations for a free trade agreement (FTA) with Chile are nearing completion. He also noted that Mexico is eager to establish an early harvest deal. Additionally, progress is being made on the Comprehensive Economic Partnership Agreement (CEPA) with Canada.

Furthermore, Goyal highlighted that discussions with Mercosur could be expedited following the conclusion of elections in Brazil. He mentioned that countries such as Ecuador and various nations in Africa have expressed interest in signing FTAs with India. Currently, India is involved in eight trade negotiations.

Goyal also indicated that Egypt has extended an invitation to discuss potential collaborations, and negotiations with the Southern African Customs Union (SACU) have recently commenced. However, he cautioned that talks with the Gulf Cooperation Council (GCC) might take longer due to the ongoing crisis in West Asia.

Building Institutional Capacity for Future Negotiations

Addressing concerns about institutional capacity and sectoral expertise for trade negotiations, Goyal stated that the government is focused on retaining the experience gained from past negotiations for future use. He emphasised that Prime Minister Narendra Modi has prioritised this aspect to ensure that the lessons learned are not lost.

Goyal explained that the government has developed comprehensive manuals serving as standard operating procedures for organised FTA negotiations. These documents are intended to assist officials in future discussions, as personnel changes are common in governmental roles.

He expressed confidence in the capabilities of Indian negotiators and officials, who are reportedly managing multiple engagements effectively. Goyal also mentioned the importance of fair trade practices and the role of China as a significant supplier of intermediate goods and raw materials to India.

According to data from the Ministry of Commerce and Industry, India’s bilateral trade with China reached $151.09 billion in 2025-26, with imports from China amounting to $131.62 billion, resulting in a trade deficit of $112.14 billion. Goyal reiterated India’s commitment to fostering open and reciprocal trade relationships globally.

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