US-India trade deal talks progressing well, says Piyush Goyal
What's the story
Union Commerce Minister Piyush Goyal has said that talks between India and the United States on a trade deal are progressing well. However, he didn't give a specific deadline for its conclusion. Responding to questions about US President Donald Trump's high tariffs on Indian imports, Goyal said the media would be informed once an agreement is reached.
Trade negotiations
Talks not based on deadlines, says Goyal
Goyal stressed that free trade agreements or talks are not based on deadlines. He said, "There is no agreement unless we fully address the interests of the nation - India's farmers, India's fishermen, India's MSME sector." The minister assured that the talks are going well and will be informed once a decision is made.
Tariff impact
Trump imposed high tariffs on Indian imports
Trump has imposed a 50% tariff on Indian imports, one of the highest in the world. Apart from a 25% base tariff for what Trump calls "trade imbalance," his administration also imposed an extra 25% due to New Delhi's purchase of Russian oil amid Moscow's war in Ukraine. This has prompted a geopolitical shift in US tone, although the connection between the tariffs on India and Trump's threat of a "100% tariff" against China is not explicitly stated.
Deal prospects
Indian team in US for 6th round of talks
The US's realignment could "accelerate a trade deal with India, with the US likely offering 16-18% tariff access, higher than the 15% for the EU and Japan but below the 20% for Vietnam," a Global Trade Research Initiative (GTRI) assessment said. An Indian team is currently in the US for the sixth round of talks that began in April, but were halted in August amid tensions, including Trump's aggressive stance.
Strategic alliance
India must hold firm on its red lines
US Treasury Secretary Scott Bessent has also listed India among allies in a "China versus the world" fight over rare earths. These minerals are used to make magnets crucial for auto, electronic, and defense industries, 80% of which are controlled by Beijing. The GTRI cautioned that India should hold firm on its red lines in agriculture, digital trade, e-commerce, and intellectual property, while avoiding any anti-China clauses that could limit its strategic autonomy.
Market access
Broader geopolitical shifts have changed things quickly
Experts have suggested that the US is still likely to press for deeper market access in sectors like medical devices, dairy, and technology services. However, broader geopolitical shifts have changed things quickly over the past few days. Washington's main focus is on securing its manufacturing industry's supply chain. A pact could help both nations reduce dependence on China-linked supply networks.