India is pressing for a tariff advantage over rivals like Vietnam and Bangladesh as it moves to finalise a trade deal with the United States, with talks led by USTR Jamieson Greer in New Delhi this week. 

Commerce Minister Piyush Goyal has emphasised that India wants comparative benefits to ensure its exporters gain, while also seeking assurances against future US tariff actions.

India is determined to secure better trade terms than other Asian economies. The visit of US Trade Representative Jamieson Greer on Tuesday for two days of negotiations comes at a critical juncture, as both sides aim to conclude a deal before Washington’s temporary 10 percent tariff expires on 24 July. 

New Delhi insists that its exporters must enjoy a competitive edge, particularly against ASEAN peers such as Vietnam, to safeguard long-term market access.

The talks follow the first meeting in over a year between Prime Minister Narendra Modi and President Donald Trump, held on 17 June on the sidelines of the G7 summit in France. Both leaders expressed optimism about the deal, with Trump calling India “very close” to finalising the agreement and praising Modi as a “tough negotiator.” This political momentum has added urgency to the technical negotiations now underway.

Diplomatic tensions have complicated the atmosphere, with the death of three Indian sailors in attacks on commercial ships by the US Navy in the Gulf casting a shadow over bilateral relations. Despite this, both governments are keen to demonstrate progress in trade as a stabilising factor in ties.

An initial understanding was reached in February, with both sides agreeing in principle to 18 percent tariffs on Indian goods in exchange for New Delhi lowering barriers and purchasing more American products.

At the time, this rate was lower than those imposed on competitors such as Bangladesh and Vietnam. However, the US Supreme Court’s invalidation of Trump’s sweeping global tariffs disrupted the process, forcing negotiators to revisit the framework.

India is also wary of the ongoing Section 301 investigations by Washington into alleged overcapacity and forced labour. These probes could lead to punitive measures, and New Delhi is pressing for guarantees that no fresh tariffs will be imposed once the deal is signed. Officials stress that India’s exporters must not be disadvantaged by future unilateral US actions.

Commerce Minister Piyush Goyal has underlined that the priority is to secure comparative advantage. “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,” he said on Monday. He added that he would be “happy” if the deal is concluded before 24 July, noting, “The faster, the better.”

Greer’s office has stated that the talks are aimed at achieving “fair, balanced, and reciprocal trade.” Analysts believe that if India succeeds in securing tariff terms better than its regional rivals, it will significantly boost competitiveness in sectors such as textiles, leather, gems, jewellery, and agriculture. 

The deal could also unlock preferential access to the vast US market, estimated at $30 trillion, while strengthening supply chains and investor confidence.

The negotiations thus represent both an economic and strategic milestone. India’s insistence on tariff advantage reflects its broader ambition to consolidate its position as a leading exporter in Asia, while balancing domestic sensitivities and external pressures. The coming weeks will be decisive in determining whether the interim pact can be signed before the July deadline.

Agencies