India-US trade framework deal ready, awaiting right time and structure for signing: Commerce Secy Rajesh Agrawal

Commerce Secretary Rajesh Agrawal on Monday said that India and the US are ready to sign the framework agreement for their proposed trade deal once both sides agree on the timing and structure, while indicating that negotiations on a broader Bilateral Trade Agreement (BTA) are progressing smoothly, according to a MoneyControl report.

"The framework deal is ready, whenever it is the right time, it will be signed when there is the right opportunity and structure," Agrawal was quoted as saying.

He said the timing of the agreement would depend on global trade dynamics and India's efforts to secure a competitive advantage over rival manufacturing economies.

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"Trade deals are about comparative advantage. These preferences are versus some competitors and some countries. So that is something we are getting structured. Whenever it is ready, then it will be signed," he added.

Agrawal stressed that trade engagement between New Delhi and Washington remains positive, dismissing suggestions of any disagreements between the two sides.

"There are no negativity, difference between India and US. Both sides know each other's expectations, both sides know what's coming in the framework deal and both sides are positively engaged. On the trade side, there are no challenges between India and US," he said.

The Commerce Secretary added that discussions on the larger Bilateral Trade Agreement continue to move forward despite recent changes in the US' tariff regime since the two countries announced plans for a framework agreement in February 2026.

He also highlighted India's growing imports of American energy products as part of a broader strategy to diversify energy supplies, reflecting the expanding economic relationship between the two countries.

On the impending expiry of the US' additional 10 per cent tariff under Section 122 on July 24, Agrawal said attention would shift to the outcome of several ongoing US trade investigations that could influence future tariff policies.

"There are already MFN tariffs. They are trying to address the additional tariffs bit to make the trade more balanced via various investigations and we will see what the outcome is," Agrawal said.

The additional 10 per cent tariff, introduced as a temporary measure, is scheduled to expire on July 24, 2026, after completing its statutory 150-day period, unless it is extended or replaced by a new trade mechanism.

The US has also initiated Section 301 investigations involving several economies, including India, focusing on issues such as forced labour and excess industrial capacity. The findings of these investigations are expected to play a key role in shaping Washington's post-July tariff framework.

The review process includes public consultations, hearings and written submissions, with final decisions likely after July 2026.

Separately, in a social media post, Commerce and Industry Minister Piyush refuted a media report on the India-US trade pact and said that India and the US teams are fully engaged in a trade pact that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers.

"Both sides reaffirmed their commitment to an agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries.

"Our teams remain fully engaged in achieving this objective," Goyal said in a social media post.

Earlier,  Goyal had said that the India-US trade agreement had already been finalised but would only take effect once India secures a clear tariff advantage over competing manufacturing nations, including Vietnam, Thailand, the Philippines, China, Malaysia, Bangladesh and Sri Lanka.

His remarks followed meetings with US Trade Representative Ambassador Jamieson Greer in New Delhi between June 22 and 24, during which both sides reviewed key components of the proposed pact, including greater market access, digital trade, supply chain resilience, reduction of non-tariff barriers and deeper cooperation in strategic sectors.

India and the US reached an interim trade understanding in February after months of tariff-related tensions.

Under the arrangement, the US agreed to reduce tariffs on Indian exports from 25 per cent to 18 per cent. An additional 25 per cent duty on Indian goods linked to purchases of Russian crude oil was removed immediately, while India agreed to expand market access for selected American products and strengthen cooperation in sectors such as energy and defence.

However, the trade landscape shifted after a US Supreme Court ruling created uncertainty over the use of emergency tariff powers, prompting Washington to adopt a temporary 10 per cent baseline tariff under Section 122 as an interim measure while broader trade issues continue to be negotiated.

With inputs from agencies