US Section 301 Tariff Move Could Create Competitive Advantage For India: Piyush Goyal

New Delhi, Jun 8 (KNN) Commerce and Industry Minister Piyush Goyal on Sunday reframed the United States' proposed Section 301 tariffs — which include a 12.5 per cent levy on select Indian imports on grounds of alleged forced labour — as an attempt by the US to create a comparative trade advantage for India rather than a punitive measure directed at it.

Speaking at the Financial Express Best Banks Awards event, Goyal said, “So this (Section 301 investigation) is really a mechanism being created, given their (the US) constraints that the Congress is not going to support any of their actions (on reciprocal tariffs)… They are trying to create a competitive edge for India. So I don’t think (we need to) worry about Section 301, we’ll tackle it, it’s our responsibility.”

India-US Trade Deal in Final Stretch

Goyal confirmed that US Trade Representative Jamieson Greer will visit India within the next two weeks for further discussions on the long-awaited interim trade deal. 

The minister expressed confidence that an agreement would be reached, while reiterating that India would not negotiate under externally imposed deadlines. 

"We will protect India’s interests and I’m very confident that the (India-US trade) deal will come through. It’ll be a good deal," he said, adding that any pact India signs must be balanced and equitable.

China: Investment Welcome, Deficit to be Tackled

On the question of Chinese investment, Goyal said the government had no objection to capital inflows from China provided they were directed at desirable sectors and did not amount to opportunistic acquisition of Indian assets. In March, India eased fast-track approval norms for investments of up to 49 per cent FDI from land-border countries, including China, in priority sectors such as capital goods, electronic components, and polysilicon.

He said the merchandise trade deficit with China — which stood at USD 112.4 billion in 2025–26 — would be addressed through a combination of building domestic manufacturing capacity and cracking down on unfair trade practices such as dumping and predatory pricing. 

He categorically ruled out re-joining the China-led Regional Comprehensive Economic Partnership (RCEP), calling India's original decision to enter those negotiations difficult to justify given that the country already had preferential trade pacts with most RCEP members.

India-UK Trade Pact: Steel Friction May Cost London Concessions

Goyal signalled that the UK's decision to impose tariff-rate quotas on steel imports — reducing tariff-free volumes by 60 per cent from July 1, with a 50 per cent tariff on imports above the cap — could prompt India to claw back some of the concessions it had offered in the India-UK Comprehensive Economic and Trade Agreement (CETA), which is close to implementation.

"On steel, we will have to rebalance with some products which will possibly even hurt the UK businesses. But that’s the nature of trade," he said, adding that two other issues had surfaced close to the pact's implementation, one of which was resolved in India's favour during recent Delhi talks.

USD 1 Trillion Export Target for FY27; More Trade Deals in Pipeline

Goyal set an ambitious target of USD 1 trillion in combined goods and services exports for the current financial year — a nearly 16 per cent increase over the USD 863 billion recorded in 2025–26. Longer-term goals stand at USD 2 trillion by 2030–31 and USD 6 trillion by 2047.

Negotiations are currently under way with Israel, Canada, Chile, Peru, Mexico, Mercosur, the South African Customs Union, and Eurasian countries, he highlighted.

The minister called on Indian corporates to move beyond the domestic market and actively pursue international investment and business opportunities across sectors ranging from banking and financial services to education, construction, and sports.

(KNN Bureau)