India and the United States are preparing to hold focused negotiations in New Delhi as both sides try to finalize the contours of a trade agreement, with New Delhi set to press the U.S. delegation on the implications of Washington's Section 301 probe and related tariff measures.
A U.S. team led by chief negotiator Brendan Lynch is due to begin a three-day round of talks with Indian trade officials starting Tuesday, according to a government source in India.
The two countries had reached an initial understanding on a trade deal in February, but momentum slowed after U.S. President Donald Trump’s sweeping tariff measures were struck down by the U.S. Supreme Court. Following that court decision, the Trump administration initiated investigations under Section 301 of the Trade Act of 1974 into alleged unfair trade practices by several trading partners, including India, and imposed a blanket 10% tariff.
In the upcoming meetings with Lynch and his delegation, Indian negotiators plan to seek relief from tariffs emanating from the Section 301 probe. A government source, speaking on condition of anonymity as the details of the scheduled discussions remain confidential, told reporters that New Delhi wants tariff relief and a competitive tariff regime.
"India has to discuss tariff rate, 301 probe impact, and aim for competitive tariff rate versus direct competition," the source said, adding that a deal could be finalised if "we get the terms fair, equitable, and balanced."
The official said India is pursuing tariff treatment that would give it an advantage over competing manufacturing hubs in Asia as it seeks to strengthen its role in global supply chains. Specifically, the source said India expects preferential tariff rates compared with developing countries in South Asia and Southeast Asia, explicitly naming Bangladesh, Pakistan and Sri Lanka.
The source also indicated that U.S. Trade Representative Jamieson Greer could visit India once the broad contours of the agreement are agreed, a sign that negotiations may be advancing toward a more formal stage.
These discussions occur as India seeks greater access to the U.S. market while navigating bilateral frictions over tariffs and other regulatory measures. The coming talks will focus on how tariff rates and the outcomes of the Section 301 investigations are addressed in any prospective deal.