Preferential Market Access Framework Shaped in India‑US Trade Talks

The upcoming India‑United States trade accord is nearing completion, according to Trade Secretary Rajesh Agrawal, who said both governments have already settled most of the text. Their current focus is on constructing a preferential market‑access framework that offers each side a tariff advantage when entering the other’s market.

Addressing the press at Mumbai’s Global FinTech Fest 2026, Agrawal acknowledged that a few negotiation points remain open but assured that the agreement will be signed at an appropriate time. He outlined the challenge of reconciling India’s Most‑Favoured‑Nation (MFN) duty regime with the United States’ executive‑tariff model, and stressed that a hybrid mechanism is being designed to give businesses in both countries a competitive edge.

Industry bodies from both nations are already in active dialogue, reflecting confidence that the pact will accelerate trade and investment. Agrawal also updated on other trade initiatives: the India‑Chile free‑trade deal is in its final phase, and the India‑New Zealand FTA is expected to move forward significantly by October.

Regarding the recent surge in freight rates, the official said the government is collaborating with exporters to ensure sufficient container supply and to mitigate logistics delays. Despite the higher shipping costs, India's export growth exceeded 15 % in the first four months of the fiscal year, indicating that the impact has so far been limited.

Finally, Agrawal highlighted the necessity of diversifying India’s service‑export portfolio beyond the prevailing IT, ITeS and professional‑services pillars to sustain long‑term growth. In FY 2025‑26, total exports were valued at $863 billion, with services contributing $421 billion – about half from IT and ITeS and roughly 30 % from professional services.