Will not rush into US FTA under any pressure: Goyal
What's the story
Commerce Minister Piyush Goyal has said that India will not rush into signing a free trade agreement (FTA) with the United States under any pressure of deadlines. Speaking at the 16th Toy Biz International B2B Expo in New Delhi, he stressed that any trade deal would be announced only when it is "fully finalized, properly concluded and in the national interest."
Ongoing negotiations
Week-long talks in Washington
Goyal's comments come after India's chief negotiator Rajesh Agrawal and his team returned from Washington, where they held week-long talks. Although a draft interim agreement is on the table, key issues related to automobiles and agriculture remain unresolved. India continues to protect its agriculture sector, especially against genetically modified crops and dairy products.
Agricultural protection
India's concerns on agriculture, dairy
India is wary of allowing soybean and corn imports unless certified as non-GM, given its domestic ban on GM crops. On dairy, India has raised concerns over subsistence-level farming and religious sensitivities around US cattle feed. To protect its farmers, India has softened its demand for the US to withdraw a 26% "Liberation Day" reciprocal tariff announced by President Trump.
Retaliatory measures
India to impose tariffs on US goods
Separately, India has informed the World Trade Organization (WTO) of its plans to impose levies on some US goods as retaliation against Washington's higher tariffs on automobiles and their components. The proposed suspension of concessions would amount to $723.75 million in duties from products originating in the United States. The current negotiations focus on an "early harvest" deal covering goods only, paving the way for a comprehensive Bilateral Trade Agreement by October 2025.
Trade expansion
India negotiating FTAs with several partners
Prime Minister Narendra Modi and President Trump had agreed in February to more than double bilateral trade to $500 billion by 2030 through a full-scale agreement. Goyal noted that India is negotiating FTAs with several partners, having recently signed deals with the UAE, Australia, and the UK. Talks are also on with the EU, New Zealand, Oman, Chile, and Peru. "FTAs are possible when both sides benefit," Goyal said.