India and the US have largely finalized their trade agreement, with discussions now focused on establishing a framework for preferential market access before the deal is formally signed, Commerce Secretary Rajesh Agrawal said on Thursday.
Speaking on the sidelines of the Global Fintech Fest 2026 in Mumbai, Agrawal said both sides have reached a broad understanding that has received positive feedback from businesses in India and the US.
He explained that India primarily follows Most Favoured Nation tariffs, while the US has been using executive tariffs. As a result, a suitable framework is needed to establish tariff differentials and preferential market access for Indian businesses.
Agrawal also said negotiations on the India-Chile Free Trade Agreement have reached an advanced stage. The India-New Zealand FTA, meanwhile, could become operational as early as October.
India’s exports increased by more than 15% during the first four months, suggesting that higher freight costs have had a smaller impact than initially expected.
On fintech, Agrawal highlighted India’s potential to expand digital payments, lending, insurance and trade finance services internationally, particularly in Global South markets. He said lowering remittance costs for Indian migrant workers from around 5-6% to 3% could put an additional $5 billion in their hands.
He also pointed to significant growth opportunities in e-commerce and fintech exports. India’s fintech services exports, he said, could potentially increase from around $8 billion to $60-$80 billion if the country captures a larger share of global opportunities.
Agrawal added that India has signed nine free trade agreements over the past five years, covering economies with a combined GDP of around $60 trillion.
