India US trade deal first tranche likely by Mid July: Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Friday indicated that India and the United States are on track to conclude the first tranche of their proposed bilateral trade agreement by the middle of next month, even as Washington considers fresh tariffs on imports from countries, including India.

Speaking on the progress of negotiations, Goyal said both sides are moving rapidly to resolve outstanding issues under the proposed interim trade arrangement. A team of US trade officials was in New Delhi from June 2-4 for detailed discussions with their Indian counterparts, as negotiations enter a critical phase.

“I also met with them yesterday, and we are fast moving towards closing all the open ends. I think sometime by the middle of next month or so, we should be in a position to execute a very vibrant first tranche,” Goyal said.

The minister said the agreement would provide India with preferential market access relative to competing exporting nations and described it as the first step towards a broader bilateral trade framework. Another senior-level US delegation is expected to visit India later this month to carry forward negotiations.

The optimism around the deal comes amid a fresh trade challenge from Washington. Earlier this week, the Office of the United States Trade Representative (USTR) proposed additional tariffs of up to 12.5% on imports from 54 countries, including India, following investigations conducted under Section 301 of US trade law.

The investigations concluded that several countries lacked adequate measures to prevent the import of goods allegedly produced using forced labour. Separately, the USTR is expected to release findings from another investigation examining excess manufacturing capacity in multiple countries, including India, a move that could potentially pave the way for further trade restrictions once current temporary tariffs expire in July.

The Commerce Ministry said India remains actively engaged with the United States on issues arising from the Section 301 investigations while simultaneously advancing negotiations on the proposed bilateral trade agreement.

Indian officials and industry groups have rejected the allegations raised in the USTR proceedings, arguing that existing international frameworks already address such concerns.

Nevertheless, officials acknowledged that New Delhi had anticipated the possibility of additional US tariff actions and has continued to pursue a negotiated arrangement that secures India a competitive advantage over rival exporting economies.