India has secured relatively favourable terms from the United States on several products currently under investigation under Section 232 of the US Trade Expansion Act, according to sources familiar with the ongoing bilateral trade discussions.
The relief reportedly covers sectors such as aircraft components, auto parts, and generic pharmaceutical products, which have been a key focus of negotiations between the two countries. Indian officials say the terms being discussed are more advantageous compared to those offered to many competing nations.
Under Section 232 of the US Trade Expansion Act of 1962, Washington has the authority to impose tariffs on imported goods if they are deemed to pose a threat to national security. Over the years, the provision has been used to levy duties on products including steel, aluminium, automobiles, semiconductors, aircraft parts, and pharmaceutical items.
At present, several Indian exports such as steel, aluminium, and auto components face tariffs ranging from 25% to 50% under the Section 232 framework. However, generic pharmaceutical products exported from India currently remain exempt from such duties.
Sources indicated that India has now obtained exemptions for aircraft parts and partial relief on auto parts. Discussions are also progressing on a framework related to generic pharmaceutical products and their ingredients.
The issue was earlier referenced in the India-US joint statement released in February 2025, where the United States agreed to pursue “negotiated outcomes” regarding generic pharmaceuticals, depending on the findings of the Section 232 review process.
Indian negotiators have been actively seeking product-specific relaxations as part of broader efforts to strengthen bilateral trade ties and reduce tariff-related barriers.
The latest development comes amid continued negotiations between New Delhi and Washington over a proposed bilateral trade agreement. Both sides are currently working toward an interim arrangement before moving ahead with a more comprehensive trade pact.
Meanwhile, US Secretary of State Marco Rubio is scheduled to visit India from May 23 to 26. The visit is expected to focus on key areas including trade, defence cooperation, and energy partnerships.
Commerce and Industry Minister Piyush Goyal also confirmed that a US delegation is expected to visit India next month for the next round of trade negotiations, following discussions held earlier this year in Washington.
Originally published on 24×7-news.com.
