New Delhi: India will only enter into a trade deal with the United States if its national interests are safeguarded, particularly ensuring that it maintains a tariff advantage over competitors, said Commerce and Industry Minister Piyush Goyal on Friday.
“India has never rushed into any trade agreement or concession under pressure or tight timelines,” Goyal emphasized in an interview with The Times of India. “Our priority is to protect national interests, ensuring a fair deal that gives us a sustained preferential advantage over competitors. We’re not working towards a specific deadline; instead, we’re focused on ensuring a deal that aligns with our national interests.”
His comments came in response to US President Donald Trump’s July 9 deadline for finalizing trade agreements. Trump had imposed reciprocal tariffs on nearly 100 countries, including a 26% tariff on Indian goods, but granted a 90-day reprieve, which is set to expire soon.
There is ongoing uncertainty over whether India and the US will finalize a mini-deal or an early agreement before the deadline. A comprehensive bilateral trade agreement is expected to be negotiated by fall (September–October), following a meeting between President Trump and Prime Minister Modi.
Goyal also made it clear that India would not compromise on the interests of its farm and dairy sectors in any trade talks. “The interests of farmers are always the top priority for the Modi government. In every agreement we’ve signed—whether with the UK, Australia, Mauritius, the EFTA, or the UAE—India’s farmers have been protected,” he stated.
While the Indian government has refrained from offering significant concessions on major agricultural products, these sectors are a key focus for the US. However, Goyal stressed that India’s stance remains firm on protecting these industries.
While the specifics of US demands remain unclear, Indian officials are particularly focused on securing duty concessions in labor-intensive sectors. Goyal pointed out that India is looking for tariff reductions in areas like leather, footwear, textiles, and certain auto parts. In exchange, India would consider reducing levies on US automobiles and American whiskey.
Additionally, India seeks protection from future tariff hikes and sector-specific actions, ensuring that it continues to benefit from lower duties compared to countries like China and Vietnam, who have already negotiated deals with the US.
As negotiations continue, the focus remains on balancing India’s economic priorities with its trade goals, while navigating the complexities of US demands.
