India remains engaged with US for a mutually beneficial trade pact: Commerce Secretary

Commerce Secretary Rajesh Agrawal said on Monday that Indian officials remain engaged with their American counterparts for a mutually beneficial India-US trade agreement. His remark comes as a deal between both economies remains at an interim framework stage, with no formal signing completed, even as key terms have been agreed upon, including a reduction in duty to 18 per cent on Indian goods.

Both sides reached the interim trade framework in early February, reducing US tariffs on Indian goods from around 50 per cent -- including a punitive duty over Russian oil -- to 18 per cent, along with India's pledges to cut barriers on US agriculture, energy and tech products up to $500 billion in value.

The central government has indicated that a formal pact may be expected by March.

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Later that month, the US Supreme Court struck down US President Donald Trump's tariffs in a 6-3 ruling, invalidating his levies under the International Emergency Economic Powers Act (IEEPA). The bench ruled that the POTUS overstepped his authority with reciprocal tariffs on imports in April 2025.

The Trump 2.0 administration, however, announced a 10 per cent sweeping tariff on America's trade partners through an alternative law, and then decided to raise it to 15 per cent, seeking to continue its tariff policy despite the court setback.

Efforts are being made to gain more clarity on the status of the US tariffs on Indian goods in view of the American Supreme Court's decision, according to sources.

The US is trying to clarify its decisions and tariff structure globally, he said. Once when clarity will the path forward become clearer, added one of the sources.

India-US Trade deal framework ready?

Officials also said that the deal framework is ready and the Indian negotiating team is continuing discussions. Changes in the agreed tariff rates, they said, are possible once clarity emerges on new levels and US tariff decisions, with the possibility that the tariff for Indian goods could be below 18 per cent.

This month, the US initiated trade investigations to detect any unfair-trade practices being practised by over a dozen of America's trade partners, including India. This investigation is under Section 301, a law that authorises the US Trade Representative (USTR) to probe and impose sanctions to combat unfair foreign trade practices.

India hopes to get preferential treatment in US trade deal: Sources

India has received the notice and discussions are underway, said sources. Once there is clarity on the global tariff architecture from the US, the tariff level could fall below 18 per cent, they said, adding that there are hopes that it will continue to secure preferential treatment by the US given that India had earlier received a better deal than other countries.

Status of free trade agreements with UK and Oman

Meanwhile, India's free trade agreements (FTAs) with the UK and Oman are in the ratification process, while talks are on with New Zealand, the EU and the US.

West Asia crisis

Speaking about the ongoing Middle East crisis, which has led to disruptions in the Strait of Hormuz -- a crucial maritime region that enables the passage of 20 per cent of the world's oil and gas, the Commerce Secretary said that a major challenge in the matter is related to logistics, with cargo movement facing difficulties through all modes of transport.

There are disruptions both in exports from India and imports from those countries, said the official.

He also said that an Inter-Ministerial Group (IMG) has been formed for continuous monitoring of the situation, with a review held with all concerned ministries at 10 am daily.

It is difficult to quantify the exact impact at the moment, but efforts will be made to compensate through other parts of the world, he noted.

India's oil imports from Russia

The official said that India continues to buy oil from Russia.

He also said that purchases were made last month.

February 2026 trade data

Official data released on the same day showed that India’s total exports -- merchandise and services combined -- stood at an estimated $76.13 billion in February 2026, marking a year-on-year rise of 11.05 per cent.

Similarly, total imports were estimated at $80.09 billion, marking an increase of 21.64 per cent.

Merchandise trade

India's merchandise exports were recorded at $36.61 billion and imports at $63.71 billion during the month, as against $36.91 billion and $51.33 billion a year ago, respectively.

The country's trade deficit -- or the shortfall between exports and imports -- stands at $10 billion, mainly due to elevated prices of gold and silver, said the official.

If petroleum and gems and jewellery exports are excluded, all sectors have recorded growth on a year-on-year basis. These two sectors have remained negative this year, he said.