India and the United States are expected to release a joint statement soon, detailing the tenets of their trade agreement, according to External Affairs Minister S. Jaishankar. Speaking on the sidelines of the Critical Minerals Ministerial in Washington D.C. on Wednesday, Jaishankar indicated that Commerce and Industry Minister Piyush Goyal is directly handling the trade negotiations, with ongoing engagement with the US Trade Representative.
The announcement follows high-level conversations between Prime Minister Narendra Modi and US President Donald Trump. On Monday, after a phone call between the two leaders, Washington agreed to immediately reduce tariffs on Indian goods from 25% to 18%. In return, India has committed to a $500 billion import plan while protecting its sensitive agricultural and dairy sectors. Trump also confirmed that the 25% duty imposed on India for buying Russian oil would be scrapped.
Goyal addressed Parliament, describing the trade agreement as a landmark framework for strengthening bilateral relations and advancing India's long-term development goals. He emphasized that the 18% tariff rate announced by the U.S. is lower than those imposed on several competing countries, enhancing India's export competitiveness. Goyal also assured that sensitive sectors, including agriculture and dairy, would remain protected, with both sides addressing concerns through compromise.
Jaishankar met with US Secretary of State Marco Rubio in Washington D.C. on Tuesday to discuss deepening cooperation across strategic sectors. Their discussion included trade, energy, nuclear, defense, critical minerals, and technology, with both sides agreeing to hold early meetings to advance shared interests. The two also discussed formalizing bilateral cooperation on critical minerals exploration, mining, and processing. Rubio highlighted joint efforts on critical minerals to "unlock new economic opportunities" between the two countries.
Jaishankar's US visit also coincided with growing strategic alignment on critical minerals. India has supported the newly launched Forum on Resource, Geostrategic Engagement (FORGE), a successor to the Mineral Security Partnership. The recent developments signify a thaw in bilateral ties after a period of strain. The agreement marks a turnaround, especially after the U.S. imposed secondary sanctions on Indian goods.