India's Goyal: Trade deal near, tariff edge over China is goal

India's export sectors most exposed to Chinese and Vietnamese competition include electronics, textiles, and light machinery. A preferential tariff schedule would narrow the price gap Indian manufacturers face against those countries, particularly in labor-intensive categories where Vietnam has gained share over the past five years.

The US is India's largest trading partner, with bilateral goods trade exceeding $120 billion in the last fiscal year. India runs a surplus of roughly $30 billion. Any tariff concession from Washington would widen that gap, which could face pushback from US domestic manufacturers.

Goyal did not detail which products would see tariff cuts or whether the deal covers services and digital trade. Those details are expected once the text is finalized, he said.

The announcement comes ahead of a scheduled visit by US trade officials to New Delhi next month. Indian exporters have been pressing for a deal since the US imposed higher duties on several Indian steel and aluminum products last year.