India, US engaged in talks on bilateral trade pact: Commerce ministry

India and the US remain engaged in discussions for a mutually beneficial bilateral trade agreement, the commerce ministry said on Friday. Chief negotiators of the two countries were scheduled to meet last month in Washington to finalise the legal text for the first phase of the bilateral trade agreement, but it was agreed to be postponed following a decision of the US Supreme Court striking down sweeping tariffs of the American administration. The ministry has denied reports about a hold-off on bilateral engagement. "We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement," the commerce ministry said in a statement. The remarks came after the United States Trade Representative (USTR) on March 11 launched a fresh round of Section 301 trade investigations targeting policies and industrial practices of 16 economies, including India and China. Following the US Supreme Court's ruling, President Donald Trump announced 10 per cent tariffs on all countries for 150 days from February 24. And now the US has announced these investigations. Meanwhile, Commerce and Industry Minister Piyush Goyal strongly rejected the reports, saying they have no basis.

"We have a very good trade agreement with the United States of America. We have been able to protect all our sensitive sectors," he said at NXT Summit 2026 here. He said that the agreement is "very powerful", and it is great for India and the USA as it will help the country get the best of technologies from America so that India can become the data centre of the world. The minister added that iPhone maker "Apple were telling me that their output in India is the best compared to any other manufacturing facility they have anywhere in the world." About 80 per cent of their plant is run by young women in India, Goyal said, adding the capabilities that India offers are truly a very compelling case. An official clarified that at no point in time have the two sides ever stated that the trade talks have stopped or "we are not doing an agreement". Some countries, such as Bangladesh, Malaysia, and Cambodia, have signed trade deals with America, but some others have only finalised and not inked the legal text. India and the US have finalised the contours of the first phase of the trade pact.

"Every country is watching how the overall scenario of tariffs is in the US. The chief negotiators of India and the US have spoken at least 4-5 times since this (West Asia) crisis, and virtual sessions are also happening. "There is no breakdown of talks. We are discussing. We are trying to see that we keep the agreement ready, but signing of the agreement will only happen at an opportune time, because this agreement, as you all are aware, is based on comparative advantage, preferential access to the US market," the official added. The US tariffs are not going away; they will be calibrated and placed at a level where India is going to get a comparative advantage vis-a-vis its competitors in the US market, another official said. Before the US Supreme Court ruling, the Trump administration had announced in a joint statement to reduce tariffs on India to 18 per cent from 50 per cent. The tariffs at that time on India were among the lowest compared to its competitor nations, such as China, Thailand, Bangladesh, Indonesia, and Vietnam. "So, since their side of the deal is not clear, there cannot be any signing ceremony right now. But the deal is there, and the design structure and the position of the deal are there," the official said. The US had announced that it would reinstate the tariffs, which were set aside by the court. Initiation of Section 301 investigations by the US against 16 economies is a step in that direction. "So, their intent is very clear. Now, what actions follow we have to see and based on that, we will have to take the next steps," the official added. At present, there are no reciprocal tariffs. The 10 per cent levies are for all countries for 150 days. "The basket of goods and services that India supplies to the US...we are in a good zone," the official added. During the April-January period of this fiscal year, the country's exports to the US increased 5.85 per cent to USD 72.46 billion, while imports rose 13.87 per cent to USD 43.92 billion.

Apart from the Section 301 probe against 16 countries, the United States Trade Representative on March 12 announced initiating separate investigations against 60 economies, including India, under Section 301(b) of the Trade Act of 1974. The investigations will determine whether acts, policies, and practices of each of these economies related to the failure to impose and effectively enforce a ban on the importation of goods produced with forced labour are unreasonable or discriminatory and burden or restrict US commerce.