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‘This is not a weak India under Congress and UPA which would negotiate and make agreements which are not in national interest,’ says Piyush Goyal on US-India trade pact.
Union Minister Piyush Goyal. (File Photo: PTI)
India-US Trade Talks: Commerce and Industry Minister Piyush Goyal has said India does not negotiate trade deals based on deadlines, but rather conducts discussions keeping in mind national interests. He added that this is not a weak India under the Congress and the UPA which would negotiate and make agreements which are not in national interest.
“India does not negotiate under deadlines, we negotiate keeping national interest in mind. National interest is paramount in all our work across the world. This is not a weak India under Congress and UPA which would negotiate and make agreements which are not in national interest,” said Goyal on the US-India trade pact while addressing reporters.
VIDEO | “India does not negotiate under deadlines, we negotiate keeping national interest in mind. National interest is paramount in all our work across the world. This is not a weak India under Congress and UPA which would negotiate and make agreements which are not in… pic.twitter.com/7guhaG3Bja— Press Trust of India (@PTI_News) July 5, 2025
The comments come amid reports that India and the US are close to finalising an interim trade agreement ahead of a key deadline — July 9, which marks the end of the 90-day suspension of reciprocal tariffs announced by former US President Donald Trump. Under that move, the US had imposed an additional 26% import duty on several Indian goods, which remains suspended temporarily.
According to a report by news agency PTI, citing an official, there is still a possibility that the deal could be announced before the July 9 deadline. An Indian delegation, led by Rajesh Agrawal, special secretary in the Department of Commerce, returned from Washington earlier this week after several days of negotiations between June 26 and July 2.
Some key issues remain unresolved, particularly in the agriculture and automobile sectors.
The two countries are looking to finalise the first tranche of the proposed bilateral trade agreement (BTA) by September–October this year. The full pact is part of a broader plan to boost bilateral trade to $500 billion by 2030, up from the current $191 billion.
What India and the US Want
The US is seeking duty cuts on a range of industrial goods, including automobiles (especially electric vehicles), wines, and petrochemicals. In the agriculture sector, the US is seeking duty concessions on products like dairy items, apples, tree nuts, and genetically modified crops.
On the other hand, India is pushing for better market access for labour-intensive sectors, such as textiles, gems and jewellery, leather, garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas.
Both sides have indicated that negotiations are progressing, but consensus on core issues will be required before any formal pact can be signed.
Agriculture a Sticky Point
One of the most sensitive issues in the talks is the US demand for duty concessions on agricultural products, including dairy, apples, tree nuts, and genetically modified crops. India has held firm on its position that trade pacts must be mutually beneficial.
India has so far not opened up its dairy sector in any of its free trade agreements.
Auto Sector Concerns and WTO Dispute
India has also raised objections to high US tariffs on steel, aluminium, and automobiles. Specifically, Washington has imposed a 25% duty on passenger vehicles and parts from India, which came into effect on May 3, 2025, and remains open-ended. India has filed a formal communication at the World Trade Organization (WTO), asserting its right to impose retaliatory tariffs in response.
India’s share in the US auto parts import market remains small, with just $2.2 billion in exports compared to Mexico’s $36 billion and China’s $10.1 billion.
Bilateral Trade on the Rise
Despite ongoing tariff tensions, trade between India and the US continues to grow. During the first two months of the current fiscal year, India’s merchandise exports to the US rose 21.78% to $17.25 billion, while imports climbed 25.8% to $8.87 billion, official data shows.
Meanwhile, the US has stated that it is preparing to issue notices to countries with which it has not concluded any trade agreement, warning of possible unilateral tariff hikes.
Apart from the US, India is also negotiating free trade agreements (FTAs) with different countries, including the European Union, New Zealand, Oman, the US, Chile, and Peru.
FTAs are possible only when both sides get benefitted and it should be a win-win agreement, Goyal has said.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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