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India-US Trade Deal: Advanced but Awaiting US Tariff Process, Says Jaishankar
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Moneycontrol•29-09-2026, 13:52
India-US Trade Deal: Advanced but Awaiting US Tariff Process, Says Jaishankar
- •External Affairs Minister S Jaishankar stated that India and the US have "more or less an understanding" on a trade agreement, but its conclusion hinges on the US Section 301 process.
- •Jaishankar noted that the Section 301 process is "still in the works" and unfolding, impacting the timing of the "very, very far advanced" agreement.
- •Commerce and Industry Minister Piyush Goyal previously indicated the deal was almost "done and dusted," with India seeking competitive advantage in the US market.
- •The US Office of the US Trade Representative proposed action under Section 301 in June, leading to an additional 10% duty on certain Indian products announced in July.
- •Jaishankar highlighted the complexities of negotiations due to differences between the two economies, including India's large base of small farmers and a significant per-capita income gap with the US.
Key Questions Answered
External Affairs Minister S Jaishankar noted that while the trade agreement is far advanced, its conclusion depends in part on how the US Section 301 tariff process unfolds.
The Office of the US Trade Representative placed India in a group subject to an additional 10% duty with certain product exemptions, following an investigation under Section 301 of the Trade Act of 1974.
India wanted an appropriate and preferential competitive advantage over other exporters in the US market before the agreement was implemented.
