Rupee, CAD under watch, US trade talks on track: Goyal says India will 'come out winner'

Union commerce and industry minister Piyush Goyal on Thursday addressed concerns around the rupee’s decline, the widening current account deficit (CAD), and shared updates on the progress of the proposed US-India trade deal.

Goyal said the Centre was actively considering several measures to contain further pressure on the CAD, while stressing that different arms of the government were working in coordination to navigate challenging global economic conditions.

“We are monitoring the situation. All the various arms of government are working as a team. Several steps are under consideration. The situation is globally quite challenging, but we have the confidence and the courage of conviction that we'll come out winners even in this challenging time...” Goyal said.

According to RBI data released on March 2, India’s current account deficit widened to $13.2 billion, or 1.3% of GDP, in the December quarter, compared with $11.3 billion in the same period a year earlier. The increase was mainly attributed to a wider trade deficit following lower exports to the US.

At the same time, the CAD for the April-December 2025 period narrowed to $30.1 billion, or 1% of GDP, from $36.6 billion, or 1.3% of GDP, during the corresponding period of the previous year.

The current account deficit reflects the gap between a country’s imports and exports of goods and services, along with other external payments and receipts.

When asked whether the government was considering steps to curb non-essential imports, Goyal said there were currently no such plans. However, he said citizens had been encouraged to reduce spending on products dependent on imports.

“No such plans of that sort right now, but we have of course made an appeal to all the citizens of India to be more conscious about their spending on products which are import dependent and it's just very natural that every Indian who trusts Prime Minister Modi has taken cognisance of that and is helping the country in every smaller big way with their own actions. I'm really proud of every Indian who has taken Prime Minister Modi's appeal to heart and is contributing to nationbuilding...” he said.

Goyal also pointed to continued investment commitments from the United States, particularly in the technology sector.

“US commitment upwards $60 billion in last six months looking at Amazon, Google data centre investment pledge; US-India truly working as natural partners, complement each other,” he said.

On the timeline for discussions around the trade deal announced earlier, the minister said the process would continue as scheduled.

“When we launched itself, if you recall, we had said that the first round of talks will happen in the second half of 2026. We will have it as scheduled.”

Earlier, a senior United States official said that Washington and New Delhi were making progress towards a finalised trade deal as the two sides held fresh negotiations in the American capital.

“The Trump administration and India continue to have positive and productive discussions towards a finalised trade deal,” the official told ANI in response to a question on the current status of the ongoing trade talks between the two countries in Washington, DC.

Indian delegates have been arriving in Washington for the latest round of negotiations. Another official familiar with the discussions, speaking on condition of anonymity, said the two sides were close to wrapping up an agreement, with most substantive issues already resolved.

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