India and the United States are making rapid progress towards finalising the first tranche of their much-anticipated bilateral trade agreement, with Commerce Minister Piyush Goyal stating on Friday that it could be executed by the middle of next month.
Progress in Trade Talks
Goyal revealed that US officials were in New Delhi from June 2 to June 4 to advance discussions and work towards finalising the agreement. During their visit, they held detailed talks with their Indian counterparts. “I also met with them yesterday, and we are fast moving towards closing all the open ends, and I think sometime by the middle of next month or so, we should be in a position to execute a very, very vibrant first tranche,” Goyal was quoted as saying by PTI.
The minister emphasised that this is only the first phase of the bilateral trade agreement, which will give India preferential access over its competitors. Another senior-level delegation is expected to visit India later this month to continue engagement on the trade discussions.
Section 301 Tariffs
Earlier this week, the US Trade Representative (USTR) proposed a 12.5% tariff on imports from 54 countries, including India and China, based on allegations that these countries have not adequately prevented the import of goods produced using forced labour. Additionally, the USTR is expected to publish findings from its second investigation concerning excess manufacturing capacity in 16 countries, including India. This probe could form the basis for a new tariff regime after the temporary 10% tariff currently in place expires on July 24.
In response, the Ministry of Commerce and Industry stated that India continues to engage with the US on issues related to the Section 301 proceedings. Discussions are also progressing simultaneously on the proposed framework agreement announced on February 2, 2026, in line with the joint statement issued on February 7, 2026.
India's Rejection of Allegations
In submissions made to the USTR, Indian government departments and industry representatives rejected the allegations and described the investigation as unwarranted. They argued that the concerns raised are already governed by internationally accepted rules and frameworks. Officials involved in the negotiations said India had been preparing for the possibility that the US would use Section 301 as a basis for imposing additional tariffs. Over the past several months, multiple rounds of discussions have taken place between Indian and American officials, with Washington increasingly relying on this provision as a key tool in its broader strategy to discourage imports and push trading partners towards bilateral tariff negotiations.
India's Stance on Tariff Negotiations
The Indian government has maintained that it would be open to a mutually negotiated tariff arrangement, provided the outcome gives India a competitive edge over other exporting nations. The minister’s comments come amid heightened trade tensions, but both sides appear committed to reaching a deal that benefits their economic interests.
Source: Based on reporting by PTI and The Times of India.
