In a major development in India-US economic and trade relations, US Ambassador Sergio Gor announced on Friday that the two countries are close to signing a critical minerals agreement.
The announcement comes shortly after the two nations agreed on a Bilateral Trade Agreement (BTA) framework, marking a significant step toward deeper economic cooperation.
US Ambassador Sergio Gor while speaking at the India Today Conclave 2026 highlighted the strategic value of the deal and said, “One of the most important areas of cooperation between our countries is critical minerals. Reliable and diversified supply chains for critical minerals are indispensable to both economic growth and national security.”
He added, “I am very pleased to say that the US and India are very close today to finalising a critical minerals agreement that will help ensure the supply chains needed for advanced manufacturing, energy systems and emerging technologies.”
The ambassador urged stakeholders to stay tuned, noting, “We expect a big announcement in the next months on that front.”
Expanding Trade and Economic Ties
India’s Commerce Minister Piyush Goyal highlighted that India is already importing nearly USD 300 billion worth of products in sectors where the US is globally competitive, including energy, semiconductors, aircraft, engines, and critical minerals. He said an interim trade agreement is expected to be signed this month and operationalised in April.
Earlier in February, both countries released a joint statement outlining a framework for the first phase of the bilateral trade pact.
Strengthening US-India Partnership
Gor emphasized the growing significance of the US-India relationship across political, economic, and societal spheres. “The US and India are paying close attention to each other across governments, business communities, and even media. And that attention reflects something deeper, a partnership that is getting stronger and more visible, and more consequential every year,” he said.
Highlighting the future trajectory of bilateral ties, Gor added, “Under President Trump’s leadership, the relationship between the US and India has the potential to reach historic heights and deliver results on a scale we have never seen before.”
He pointed to three key areas of progress: trade, trusted technology cooperation, and strategic coordination between the two governments. “These developments indicate that the bilateral relationship is moving toward deeper collaboration, broader economic opportunities and stronger security cooperation,” he said.
Gor also underlined the US administration’s emphasis on reciprocity in trade policy. “Reciprocity means fair trade, mutual respect and shared prosperity,” he said, noting that the partnership extends beyond tariffs to securing critical resources and strengthening supply chains that will shape the global economy in the future.
Key Aspects of Interim Trade Agreement
The interim trade agreement between India and the US includes several key measures aimed at expanding market access and strengthening economic ties. Under the deal, the US will reduce tariffs on Indian goods from 50% to 18%, creating opportunities for sectors such as textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, handicrafts, and machinery. Tariffs will also fall to zero for products like generic pharmaceuticals, gems and diamonds, and aircraft parts.
India will secure Section 232 exemptions for aircraft parts, a tariff rate quota for auto parts, and negotiated terms for generic medicines, while sensitive agricultural sectors including wheat, rice, maize, soybeans, poultry, dairy, and certain vegetables will remain protected.
In return, India will reduce or eliminate tariffs on US industrial goods and select agricultural products such as nuts, fruits, soybean oil, wine, and spirits. Both countries have also agreed to address non-tariff barriers, rules of origin, and technology cooperation, with India planning to purchase USD 500 billion worth of US energy, aircraft, technology, and other goods over five years. The final agreements are expected to be signed later this month or in early April, marking a major milestone in India-US trade relations.
US Ambassador Highlights Strength of India-US Trade Ties
On 13 March, US Ambassador to India Sergio Gor described India as a “tough negotiator” in trade discussions and emphasized that Washington expects New Delhi and other partners to honour agreements reached with the US.
Gor also credited the successful India-US trade deal to the personal efforts of President Donald Trump and Prime Minister Narendra Modi, noting that the two leaders share a “deep and personal” friendship.
“India is a tough negotiator,” Gor said during the discussion at the India Today Conclave and added that the Washington-New Delhi relationship has the potential to reach “historic heights” and highlighted recent breakthroughs, such as the US-India interim trade agreement, as evidence of the growing strength of the partnership.
“We are seeing something different. Instead of breakdown, we are seeing breakthroughs. We have already seen a remarkable series of breakthroughs that demonstrate the strength and momentum of the US-India partnership,” he said.
Gor further emphasized, “The relationship has the potential to reach historic heights and deliver results on a scale we have never seen before.” He also stressed that the United States expects countries entering agreements with Washington to uphold the terms of those deals.