US trade envoy Jamieson Greer arrives in India Tuesday for two-day trade talks aimed at finalising a bilateral deal before July 24.
India is pushing for tariff terms better than ASEAN rivals like Vietnam to give its exporters a competitive edge.
Negotiations remain complicated by a US Section 301 probe and diplomatic tensions over the death of three Indian sailors in Gulf attacks by the US Navy.
India Seeks US Tariff Deal to Stay Ahead of ASEAN Rivals
In February, the two sides agreed in principle to 18% tariffs on Indian goods in exchange for India lowering trade barriers and committing to purchase more American goods. At the time, the proposed rate was lower than tariffs facing competing economies such as Bangladesh and Vietnam
Summary
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US Trade Representative Jamieson Greer will visit India on Tuesday for two days of trade negotiations, with New Delhi pushing for tariff terms more favourable than those offered to other Asian economies, including ASEAN nations such as Vietnam, news agency Reuters reported.
The visit follows the first meeting in over a year between Prime Minister Narendra Modi and US President Donald Trump, held on June 17 on the sidelines of the G7 summit in France. Greer's office said the talks are aimed at "achieving fair, balanced and reciprocal trade."
"We are trying to work out with the US how they will ensure that we will get a comparative advantage, so that our exporters can benefit," Commerce and Industry Minister Piyush Goyal said on Monday.
Goyal said he would be "happy" if a deal is finalised before July 24, when Washington's temporary 10% tariff on trading partners is set to expire, adding: "The faster, the better." He also noted that the trade deal had taken longer to conclude due to the 50% tariff imposed on Indian goods.
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India is also seeking assurances that Washington will not impose fresh tariffs after a deal is signed. A government official told Reuters that New Delhi remains wary of further tariff threats if negotiations stall.
Where Talks Stand
In February, the two sides agreed in principle to 18% tariffs on Indian goods in exchange for India lowering trade barriers and committing to purchase more American goods. At the time, the proposed rate was lower than tariffs facing competing economies such as Bangladesh and Vietnam.
However, a final agreement was disrupted after the US Supreme Court invalidated President Trump's sweeping global tariffs. An initial understanding on trade had been reached in February, but uncertainty has persisted over a continuing US Section 301 investigation into alleged overcapacity and forced labour practices.
The trade negotiations are unfolding against a backdrop of broader diplomatic strain. The death of three Indian sailors in attacks on commercial ships by the US Navy in the Gulf has added to tensions between the two countries, according to the news agency.
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India is also wary of further tariff threats if talks stall, a government official told the news agency.
The two sides are working against a tightening timeline. The temporary 10% tariff regime expires on July 24, and both governments have signalled a desire to reach an agreement before that deadline.