India Us Trade Deal: ‘More or less finalised’: India-US trade deal nears signing, says commerce secretary

India-US trade deal ‘more or less’ finalised (representative image)

The India-US trade deal has been “more or less” finalised, with the two countries now working on a framework for preferential market access before signing the agreement at an appropriate time, commerce secretary Rajesh Agrawal said on Wednesday.Speaking to the media on the sidelines of the Global Fintech Fest 2026, Agrawal said a few issues were still being discussed between the two sides.“There are few things which both sides are discussing, but it will be signed at an appropriate time,” he said, as quoted by news agency ANI.Agrawal said India and the US need to ensure preferential access to each other’s markets under the agreement. India operates on most-favoured-nation (MFN) tariffs, while the US is working with executive tariffs, requiring an architecture that would create differentials and preferential market access for India.He said businesses in both countries were already engaging strongly and were satisfied with the overall understanding reached between the two governments.

India works on other trade deals

Agrawal also outlined the status of India’s other trade negotiations.The India-Chile free trade agreement is at the final stage, with some areas still under discussion. Agrawal said the next two to three months should bring some progress.India is also hoping to make the India-New Zealand free trade agreement live “as soon as possible”, potentially in October, he said.On freight costs affecting exporters, Agrawal said the government was working with exporters to ensure access to ships and containers and minimise cargo delays and costs.Exports grew by more than 15% in the first four months, he said, indicating that the impact of higher freight costs had not been as large as anticipated.

India seeks wider services export base

Agrawal also said Indian industry needs to diversify its services exports beyond IT/ITeS and professional services to achieve sustainable growth.India’s total exports stood at $863 billion in 2025-26, with services contributing $421 billion.However, IT/ITeS-based services account for about 50% of India’s total exports, while professional services contribute another 30%.“So these are the two pillars on which our services exports are based right now but it needs diversification if we have to grow and if we have to grow sustainably for a long period of time, we need diversification,” Agarwal said.He said India had the potential to provide a wider range of services to global markets, with technology offering an avenue for diversification.The global financial services market is worth around $670 billion, while India’s share stands at about $8 billion, or just over 1% of global trade, according to news agency PTI.“Fintechs here can make the change,” Agarwal said, adding that 95% of India’s $8 billion in financial services exports are digitally delivered.

Fintech, remittances offer growth opportunities

Agrawal also highlighted opportunities for India’s fintech sector to expand globally, particularly across the Global South, by building on the country’s experience with digital payments, lending, insurance and trade finance.He said reducing the average cost of remittances for Indian migrant workers from 5-6% to 3% could put an additional $5 billion in their hands. A similar reduction globally could benefit the global migrant population by $30 billion.The global cross-border payment market is currently about $182-190 billion and is projected to reach $350-360 billion by 2032, while the cards and payments market, currently around $1 trillion, is expected to reach $1.5 trillion by 2028-29.Agrawal cited UPI as an example of digital public infrastructure built at population scale, highlighting its use in financial inclusion, accessibility and reducing transaction costs.

India eyes bigger e-commerce, fintech exports

Agrawal said India currently accounts for about $5 billion in e-commerce exports, compared with $1 trillion in global e-commerce trade.He also said India had signed nine trade agreements over the past five years covering economies with a combined GDP of $60 trillion, while 23 countries had signed MoUs with India for cooperation on digital public infrastructure.On the opportunity for India’s fintech services exports, Agrawal said, “If we can partake even 10 per cent of the trade we are talking, a journey of $8 billion to maybe $60 to 80 billion.”The comments come as India works to expand market access through trade agreements while seeking to diversify its services exports and build on its fintech capabilities.