India's Bold Stance on US Trade Tariffs: What’s Next for Bilateral Relations?
India's Trade Negotiations with the US
New Delhi: On Friday, Piyush Goyal, the Minister of Commerce and Industry, announced that India is actively pursuing a bilateral trade agreement with the United States. He emphasized that the recent 50% tariff imposed by the US on Indian imports is unlikely to significantly affect India's economy.
Goyal stated, "We are always open to establishing a beneficial free trade agreement. However, we will not yield to discrimination. Together, we will continue to advance," during an industry event.
These comments come in light of the Trump administration's decision to impose steep tariffs on Indian goods, which many view as a tactic to pressure India into conceding to US demands regarding the trade agreement.
The US is particularly interested in gaining better access to India's sensitive agricultural and dairy markets.
India has labeled these tariffs as both unfair and unjustified, asserting that it will protect the interests of its farmers and livestock producers.
The minister expressed confidence in India's export diversification efforts, predicting that exports this year will surpass the figures from 2024-25, which reached a record high of USD 825 billion.
Goyal noted that India's share in global trade remains low, assuring that there is no cause for concern, especially given the country's successful management of the COVID-19 pandemic and nuclear sanctions.
He pointed out that approximately 40% of India's exports to the US are exempt from these tariffs, highlighting the country's import-dependent economy.
Regarding the proposed free trade agreement, Goyal mentioned, "We are in discussions with the US for a BTA and aim to complete the first phase by October-November this year."
Negotiations for this pact have been ongoing since March, with five rounds of talks already completed. However, following the tariff imposition, the US delegation postponed its planned visit to India for the next round of discussions, which was set for August 25.
As of now, no new dates have been established for the sixth round of negotiations.