India-U.S. Trade Deal Nears Completion as USTR Greer Set to Visit New Delhi

In the lead-up to U.S. Trade Representative (USTR) Jamieson Greer's visit to New Delhi on June 23-24, two government sources have confirmed to The Hindu that an interim trade deal between India and the United States requires only “final touches.” The U.S. has reportedly shown keenness to finalise the agreement.

Greer is scheduled to meet Commerce Minister Piyush Goyal and other officials from the Commerce Ministry. The discussions are expected to focus on completing the framework deal. However, Goyal has indicated that implementation will depend on the U.S. finalising various tariff-related matters.

“We cannot implement the FTA until we secure a competitive advantage,” Goyal told reporters. “The issue currently pending is that our duties need to be lower compared to those of competing nations; once this is settled, the trade agreement will be implemented.”

The development follows a visit by Assistant USTR Brendan Lynch to New Delhi earlier this month. The two countries had issued a joint statement in February outlining a framework for an interim deal. Under that framework, the U.S. was to impose an 18% tariff on imports from India, giving it an edge over competitors.

However, the process was delayed after the U.S. Supreme Court invalidated reciprocal tariffs imposed by President Donald Trump. Additionally, a Section 301 investigation launched by the USTR in March—looking into whether trade partners, including India, are effectively prohibiting imports made using forced labour—has complicated the timeline. In June, the USTR proposed a 12.5% tariff on 54 countries, including India, under this investigation. The final hearing is set for July 7.

A senior Commerce Ministry official stated that the Section 301 investigation is a legal process and that India has made its submissions. “The trade deal covers the entire gamut of trade relations and whenever a deal is signed we will have clear answers on Section 301 investigations,” the official said.

A second official, closely associated with India's trade negotiations, confirmed that talks have reached an advanced stage. “Several issues and details have been settled. The U.S. seems serious about finalising an agreement,” the official said.

Both officials noted that U.S. tariffs are likely to persist in some form, given their strategic importance in bringing manufacturing back to the U.S. Nevertheless, the trade deal is expected to provide India a competitive advantage over countries without such an agreement.