India-US interim trade pact likely to be operationalised in April: Goyal
New Delhi (PTI): An interim trade agreement between India and the US is likely to be signed in March and operationalised in April, Commerce and Industry Minister Piyush Goyal said on Friday.
Earlier this month, India and the US released a joint statement announcing a framework for an interim trade agreement.
To finalise the text of the first phase of the bilateral trade agreement, the chief negotiators of the two countries will meet in Washington next week.
The three-day meeting between the two teams will begin on February 23.
Goyal told reporters here that the pact is expected to be signed next month and may be implemented in April.
US Trade Representative (USTR) Jamieson Greer is likely to visit India in March to sign the agreement.
In an event at the AI Impact Summit here, US Ambassador Sergio Gor said that the India-US trade deal is set to be inked soon.
India on Friday joined the US-led strategic alliance Pax Silica aimed at building a resilient supply chain for critical minerals.
"From the trade deal to Pax Silica to defence cooperation, the potential for our two nations to work together is truly limitless," Gor said in his remarks.
The joint statement, released separately by the two nations earlier this month, lays down the contours of the deal. These now need to be translated into a legal agreement, for which the two sides will meet next week.
The Indian team will be headed by chief negotiator Darpan Jain, who is a joint secretary in the Commerce Ministry.
Under the pact, both sides would extend duty concessions to each other on a number of goods traded between them.
The US has announced that it will reduce the reciprocal tariffs on Indian goods from 25 per cent to 18 per cent. It has already eliminated the 25 per cent punitive tariffs on India for buying Russian crude oil. The move is a big relief to the domestic industry as they were facing steep 50 per cent tariffs by the US.
Goyal expressed hope that an executive order to cut the tariffs to 18 per cent would be issued by the Trump administration this month.
While speaking at the launch of seven components of the Rs 25,060-crore export promotion mission (EPM), Goyal said the India-US trade agreement has opened huge business opportunities for Indian exporters.
He said that India has protected all the sensitive sectors, including agriculture.
"Now once that rate (50 per cent tariff) comes out to lower than any of our competitors, we are lower than anybody else who is an emerging market or a developing economy, and plus having safeguarded all the sensitive sectors, it's a great win-win solution for both countries," he said.
The minister said that labour-intensive sectors like apparel, leather and marine were suffering from high tariffs.
He also criticised Congress leader Rahul Gandhi for raising concerns about the deal.
Stepping up his attack on the government over the interim US trade deal, Gandhi on Friday said the answer to why Prime Minister Narendra Modi agreed to a deal, where India gives so much and appears to get so little, and makes an "abject surrender" lies in the "grips" and "chokes" placed on him.
Gandhi questioned that why the government has agreed to increase US imports by USD 100 billion a year without a reciprocal promise.
"I think he (Gandhi) lives in a world very detached from reality. All of you here are exporters. Were you happy with the 50 per cent tariff? Was your business prospering? Were your jobs safe? Was Tirupur able to export apparel? What was happening to your leather industry where lakhs of workers are working? What had happened to our marine seafood exports? All labour-intensive sectors were suffering," he said.
He added that businesses will prosper at the 18 per cent rate that India negotiated under the trade pact with the US.
It will help boost exports of gems and jewellery, and spices also, he said. On imports from the US, Goyal said India needs high-tech devices like GPUs (Graphics Processing Units), coking coal and aircrafts.
"We need airplanes in India. As our steel production doubles and is slated to double from 140 million to 300 million tonnes in the next 5-6 years, huge investments, almost Rs 10 lakh crores investments are in the pipeline in the steel industry. That steel will need coking coal.
"You are all businessmen in this room. Is it better to have two sources of a product or six sources of a product?," he asked.
India needs these products from trusted partners for its economic growth, the minister said, adding that exports will play an important role in the effort to push the country's growth.
"...very clearly, India is on the right track. We make sure that our sensitive defensive interests remain protected. All our agricultural produce in India remains protected from the markets where there is any competition. We ensure that we open our market for consumer benefit," he said.
Through this deal, he said, India has ensured to purchase high-quality pharma products, "super expensive and complicated" medical devices will come to India at lower or zero import duty.
"We are serving 1.4 billion consumers who are also a stakeholder in the development," he added.
According to the joint statement, India has expressed its intention to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
The reciprocal tariffs on India are now among the lowest compared to its competitor nations.
These countries include China (35 per cent), Thailand (19 per cent), Myanmar (40 per cent), Cambodia (19 per cent), Indonesia (19 per cent), Brazil (50 per cent), and Vietnam (20 per cent).
During the April-January period of this fiscal year, the country's exports to the US increased 5.85 per cent to USD 72.46 billion, while imports rose 13.87 per cent to USD 43.92 billion.
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Beyond the Hype: Why Software Engineers and AI Are Partners
There is a lot of noise today about Artificial Intelligence. Everywhere you look, someone is saying AI will change the world. Some even say it will reduce the need for software engineers. If you run a business, lead a technology team, or simply follow tech news, this question may be on your mind: is AI really going to take over the work of human programmers?
Let us slow down and think calmly.
Yes, AI is growing very fast. Yes, it can now write computer code, create images, draft emails, and even design products. But at the same time, many claims about AI are exaggerated. Some companies are rushing to adopt AI in everything they do. Others are moving carefully, testing it step by step. Both approaches have logic behind them.
I come from the electronics industry, where we design and build the chips and computing systems that make AI possible. Ironically, to stay competitive, even we have to use Generative AI. Generative AI simply means AI that can create new content such as code, designs, layouts, or reports. It acts like a creative assistant. But there is a major difference between creating something quickly and creating something that is perfect.
In electronics, aerospace, medicine, automobiles, and finance, quality and safety standards are extremely strict. One small mistake can lead to a serious accident, financial loss, or even harm to a person. Imagine an AI system in a hospital giving one wrong suggestion for treatment. Imagine an AI error in an aircraft control system. The consequences can be severe. Because of this, no company in such sectors can blindly trust AI tools, no matter how advanced they appear.
The same reality applies to software engineering. AI can write code. But writing code is only one part of the job. Code must be tested, reviewed, secured, optimized, and made reliable. It must work not just today, but for years without failure. This level of responsibility cannot yet be handed over fully to a machine.
Let us look at what surveys say. A 2025 report by Stack Overflow, mentioned in Forbes, revealed that more than 80 percent of developers are already using AI tools. That sounds impressive. But the same report also showed that 66 percent of them often feel frustrated. Why? Because AI-generated code is almost correct, but not completely correct. It works halfway and then breaks in unexpected ways. In simple words, AI gives a good starting point, but not a finished product.
Earlier studies showed something similar. When AI tools were given simple coding tasks, they performed quite well. But when problems became complex, the AI struggled. It needed careful guidance from experienced engineers. Interestingly, the mistakes made by AI were often smaller and easier to fix compared to human mistakes. This means AI can be useful as a first draft writer. But just like an essay draft, someone must review and polish it before final submission.
This brings us to an important truth. AI can assist software engineers, but it cannot replace skilled professionals. A senior engineer must still check, correct, and finalize what AI produces. Responsibility still lies with humans.
Instead of seeing AI as a threat, it is better to see it as a smart helper. AI can suggest improvements, detect simple errors, and speed up repetitive tasks. It can save time. But timing and context matter. If AI interrupts at the wrong moment or gives too many wrong suggestions, it becomes distracting rather than helpful. Technology alone is not enough. We must also understand how people think and work.
A practical way to use AI is not to throw away existing systems, but to improve them. Many companies are adding AI features on top of their proven software instead of replacing everything. For example, adding a chat-based interface allows users to give simple written instructions instead of learning complicated commands. This makes powerful tools easier to use.
In industries like electronics, core design software is built on decades of human knowledge and testing. It would be unwise to discard such strong foundations. So companies are adding Generative AI as a support layer. You can see this approach in companies like Cadence, Synopsys, Siemens, Nvidia, Google, Microsoft, and Meta. They use AI to enhance their tools, not to start from zero. This keeps trust intact while still encouraging innovation.
In areas where accuracy is critical, AI is used carefully. For example, in quality testing, AI can quickly detect possible defects. But the final decision still depends on established, proven methods. On the other hand, in tasks like improving performance or reducing power consumption in large computing systems, small errors may be acceptable during experimentation. In such cases, AI can explore many design possibilities much faster than humans.
Another important change is how people interact with machines. Many powerful software tools are complicated and require months of training. AI-based interfaces allow users to give simple prompts in plain language. This can make technology more accessible. But easier access does not remove the need for expertise. In fact, experienced engineers become even more valuable. They guide AI tools, validate outputs, and ensure systems remain secure and reliable.
So, will AI take over software engineers? In my opinion, not anytime soon. Fully automatic software development without human involvement is still far away. Even today, AI-written code must be reviewed before being used in real systems.
For newcomers in programming, AI can act as a helpful guide. It can explain concepts, suggest solutions, and speed up learning. But beginners must be cautious. AI sometimes makes small but critical mistakes that are easy to miss without experience. Human judgment remains essential.
The smartest approach is balance. Add AI into existing systems instead of replacing them. Combine speed with supervision. Combine automation with accountability. This way, teams can innovate while still maintaining control and understanding.
Generative AI is a powerful tool. But like electricity or the internet, it becomes meaningful only when used responsibly. The future of technology is not humans versus AI. It is humans and AI working together, each doing what they do best, to build safer, smarter, and more reliable solutions for society.
(Girish Linganna is an award-winning science communicator and a Defence, Aerospace & Geopolitical Analyst. He is the Managing Director of ADD Engineering Components India Pvt. Ltd., a subsidiary of ADD Engineering GmbH, Germany)
Disclaimer: The views and opinions expressed in this article are solely those of the author. They do not necessarily reflect the views, policies, or position of the publication, its editors, or its management. The publication is not responsible for the accuracy of any information, statements, or opinions presented in this piece.
