India is negotiating trade deals with countries on its own terms: Goyal

Business Standard

11 hours ago

Days ahead of America's 9 July reciprocal tariff deadline, Commerce and Industry Minister Piyush Goyal said that India is negotiating trade agreements with countries on its own terms, emphasising that "national interest will always be supreme."
'India is negotiating with different countries—EU (European Union), New Zealand, US (United States), Oman, Chile, and Peru. An FTA is possible only when both countries benefit; it should be a win-win agreement, and when India's interests are protected, national interest will always be supreme. If we get a good deal, and our interests are protected, India is ready to do deals with developed nations,' Goyal told reporters on the sidelines of an event.
On 2 April, the Trump administration had announced reciprocal tariffs, including a 26 per cent levy on Indian goods. It subsequently paused the implementation for 90 days to allow time for negotiations, while retaining a universal 10 per cent tariff on all countries. Thereafter, India and the US decided to finalise an interim deal, or the first part of a broader bilateral trade agreement (BTA), before 9 July, the 90-day pause deadline. If a deal between both countries doesn't materialise, India will face a 26 per cent reciprocal tariff from the US after 9 July.
Intense negotiations have been going on between both sides over the past week. A trade delegation from New Delhi, led by chief negotiator and Commerce Department Special Secretary Rajesh Agrawal, has been in Washington, DC since 27 June, in an attempt to finalise an interim deal before 9 July. The team extended its stay until Thursday to sort out the key points of contention.
During the talks, the Indian side hardened its stance on issues related to the 'sensitive' agriculture sectors, as negotiations for a trade deal with the US continued. Additionally, New Delhi has repeatedly stated that agriculture and dairy remain major 'red lines' in its negotiations with the US.
'Negotiations are not contingent on any date…our interest is— we should get sustained preference over other competing countries in areas of our interest. If we get that, we will be happy to do a deal,' a government source said.
India's key areas of interest include lower tariffs for labour-intensive sectors such as textiles, leather, and automobile components. As part of the deal, India has been pushing hard for the removal of reciprocal tariffs. The source also indicated that Washington is unlikely to offer any relief on the additional tariffs on steel.
Earlier this week, External Affairs Minister S. Jaishankar stated, "There will have to be a give and take. Just like the US or people in the US may have views about India, people in India have views about the US too. We'll have to find a kind of meeting ground. I believe it's possible."
On the other hand, the US administration has been saying that a trade deal with India will be finalised soon. On 26 June, US President Donald Trump indicated that a "very big" trade agreement with India may be signed soon.
'We just signed (a trade deal) with China. We are not going to make deals with everybody… But we're having some great deals. We have one coming up, maybe with India, a very big one, where we're going to open up India,' he said.