India-US trade deal expected to happen after completion of investigations under Section 301: Govt source

The US team will visit India next. Date of the visit has not yet been finalised but the deal will factor in Section 301 related tariffs and other restrictions, a senior official said.
US President Trump and Prime Minister Narendra Modi
US President Trump and Prime Minister Narendra ModiFile photo | PTI
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A team of US trade delegation is likely to visit India soon for the next round of talks on the proposed bilateral trade agreement, with discussions expected to cover all pending issues, including Washington’s Section 301 investigation against India, confirmed source from the Ministry of Commerce.

However,  the deal is not expected to happen unless the investigations under Section 301 probe against India are complete, added the source.

"The US team will visit India next. The dates are yet to be finalised. The deal will most likely happen, after the investigation under Section 301 is over, " said the source.

Negotiations for a Bilateral Trade Agreement (BTA) between India and the US have faced significant hurdles following a US Supreme Court ruling in February that declared reciprocal tariffs illegal.

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In response, the United States Trade Representative (USTR) initiated investigations into India under Section 301 of the Trade Act of 1974, targeting alleged "structural excess capacity" in labor-intensive sectors such as steel, textiles, and solar modules. Furthermore, the US has accused India of overcapacity and the use of forced labor in production, allegations which India has formally opposed by arguing that Washington has failed to identify any specific domestic policies or practices that lead to such violations.

Compounding these tensions, India remains on the "priority watch list" in the April 30, 2026, Special 301 Report due to enduring conflicts over intellectual property rules, particularly regarding pharmaceutical patent standards and medicine access. India’s continuous presence on this list since the 1990s highlights the deep-seated and long-standing regulatory divergences between the two nations.

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