India is weighing a broader strategic trade-off in its negotiations with the United States, seeking not only relief from potential Section 301 tariffs but also a competitive advantage over rival emerging economies, as a US negotiating team arrives in New Delhi for fresh talks, a senior government official said.

A US trade delegation is in Delhi from Monday for three days of negotiations, with both sides working to advance discussions on an interim trade arrangement before July 24, when the current 10% baseline tariff window is expected to expire.

According to the official, India’s assessment is increasingly centered on a “Section 301 plus competitive advantage” framework, under which any interim arrangement must be evaluated not merely on whether it shields India from additional US tariff action but also on whether it strengthens India’s position relative to competing emerging markets.

“The trade-off is not a bad idea,” the official said.

The negotiations are expected to focus on unresolved issues including market access, non-tariff barriers and digital trade concerns. Officials believe a solution must be found before the July deadline closes, when the temporary tariff framework is expected to lapse.

The official also indicated that US Trade Representative Jamieson Greer could visit India sometime in July, potentially providing political impetus to the negotiations as both sides seek to narrow differences.

Alongside the US track, India is also stepping up engagement on carbon-linked trade barriers. With the UK trade minister expected in India, New Delhi plans to raise concerns around the Carbon Border Adjustment Mechanism (CBAM), particularly its implications for India’s steel industry.

Although there is more time before CBAM timelines tighten, officials believe discussions must begin early to explore whether a balancing mechanism can be worked out to protect domestic industry.

Commerce Minister Piyush Goyal said trade discussions between India and the US would continue in New Delhi from June 2–4, adding that “99% of the discussions” have been concluded, with only a few outstanding issues left to be resolved. “Very soon we will announce the signing of the first BTA with the US, and continue our conversations on the second phase,” Goyal said. 

Published on: Jun 1, 2026 4:14 PM IST