India-US trade deal: Sharing an important update on discussions for the much-anticipated India-US trade deal, Commerce minister Piyush Goyal on Friday said that the first tranche could be finalised as early as next month.India and the US are making rapid progress towards resolving the remaining issues in their proposed interim trade arrangement, with both countries expected to implement the first phase of the agreement by the middle of next month, Goyal said.According to Goyal, officials from the US were in New Delhi between June 2 and 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.“It is only the first tranche of our bilateral trade agreement, which will give preferential access to India over our competitors,” he added.The minister further stated that another senior-level delegation is likely to visit India later this month to continue engagement on the trade discussions.
India faces Section 301 tariffs
Earlier this week, in a move that had largely been anticipated by markets, the US Trade Representative (USTR) proposed a 12.5% tariff on imports from 54 countries, including India and China. The proposal is based on allegations that these countries have not adequately prevented the import of goods produced using forced labour.Also Read | Trump’s 12.5% additional tariffs move under Section 301: What does it mean for India & trade deal talks?Separately, the USTR is also expected to publish findings from its second investigation concerning excess manufacturing capacity in 16 countries, including India. The probe is being closely watched as it could form the basis for a new tariff regime after the temporary 10% tariff currently in place expires on July 24.Responding to the latest development, the Ministry of Commerce and Industry said in a statement that India continues to engage with the US on issues related to the Section 301 proceedings. The ministry added that discussions are also progressing simultaneously on the proposed framework agreement announced on February 2, 2026, and in line with the joint statement issued on February 7, 2026.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.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.
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