NEW DELHI: In the ongoing trade talks with the US, India has secured relatively favourable terms on several items facing investigation under Section 232, including pharmaceutical products, auto parts and aircraft components, a commerce ministry source familiar with the matter said.
“As far as certain other products are concerned which are under Section 232 investigation, there is a separate treatment for them also. We have got exemption for aircraft parts and, to some extent, on auto parts. We also have a framework to work on generic pharma,” the source told TNIE.
Under Section 232 of the US Trade Expansion Act of 1962, the US government can impose tariffs on imports on grounds of national security concerns.
Washington has invoked the provision to levy duties on sectors such as steel, aluminium, automobiles, aircraft and their parts, semiconductors and pharmaceuticals. These tariffs currently range between 10% and 50% on a range of strategic products. Some Indian exports, including steel, aluminium, and autoparts face tariffs of 25-50% under Section 232. Generic pharmaceuticals, however, currently attract no tariff.
In the India-US joint statement signed in February 2025, the US had agreed to provide India with “negotiated outcomes with respect to generic pharmaceuticals and ingredients”, contingent on the findings of the Section 232 probe.
“So comparatively, when I look at our terms of settlement, the terms are better than any competitor for India,” the source added.
Indian negotiators have been pushing for product-specific relaxations as part of the broader bilateral trade discussions.
The development comes at a time when India and the US are continuing negotiations for a proposed bilateral trade agreement, with both sides aiming to conclude an interim arrangement before moving towards a broader pact.
US Secretary of State Marco Rubio will visit India from May 23 to 26. The four-day visit, his first visit to India since taking office, will focus on trade, defence and energy cooperation.
Delegation coming
Commerce and industry minister Piyush Goyal said a US delegation is expected to visit India next month for further negotiations on the proposed agreement. This follows the talks held in April in Washington between Indian and US officials