'No Deal' Better Than A Bad Deal: India's Message To US On Trade Talks
'No Deal' Better Than A Bad Deal: India's Message To US On Trade Talks Written By, Last Updated: July 13, 2026, 09:33 IST India has
'No Deal' Better Than A Bad Deal: India's Message To US On Trade Talks Written By, Last Updated: July 13, 2026, 09:33 IST India has refused to rush into a trade deal with the US, betting stronger exports, new FTAs and a healthier economy will help it negotiate better terms Rapid Read Analysts also believe India is calculating that some of the Trump administration’s proposed trade measures may face legal and political hurdles in the US. (AFP) India has decided against rushing into an interim trade agreement with the United States, with the Narendra Modi government believing its bargaining position has strengthened amid improving economic conditions, expanding trade partnerships and reduced external risks, according to government officials and analysts. Despite months of negotiations and expectations that an interim pact could be finalised during US Trade Representative Jamieson Greer’s visit to New Delhi last month, the two sides failed to reach an agreement after remaining divided on key issues. According to Reuters, India refused to accept a deal that did not address its principal demands, including preferential tariff treatment over competing exporters such as China and assurances that Washington would not impose fresh tariffs after signing the agreement. Indian negotiators also remained firm on protecting politically sensitive sectors such as agriculture. ALSO READ | What’s Delaying The India-US Trade Deal? US Envoy Explains “Our position is clear—we don’t intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," an Indian government official aware of the negotiations told Reuters.
The report says Washington had hoped to secure quick trade concessions from India before President Donald Trump’s proposed new tariffs come into force later this month. However, New Delhi has shown little urgency despite the possibility of higher duties on Indian exports. A day after Greer’s visit, Commerce and Industry Minister Piyush Goyal also signalled India’s tougher stance, saying any agreement with the US would only move forward if it ensured an advantage for India. Currently, most Indian exports to the US attract a 10 per cent tariff. However, the Trump administration is expected to introduce steeper tariffs later this month through investigations into excess industrial capacity. Separately, Washington has proposed additional tariffs of up to 12.5 per cent on several countries, including India, over allegations relating to goods made with forced labour—charges India has denied. A US source familiar with the negotiations told Reuters that “the US view has been that India needs to earn the preferential treatment on trade provisions it has sought by making its own concessions". ALSO READ | Tariff, $50 Billion Trade Imbalance: US Senator Marshall Flags Challenges In India-US Deal Talks While both sides remain engaged, officials indicated that a breakthrough is unlikely in the immediate future. A US official, speaking on condition of anonymity, said Washington still expected an agreement but added that India had at times been “slow, bureaucratic and difficult" during the negotiations. However, White House spokesman Kush Desai said: “The Trump administration continues to productively engage with Indian officials to finalise a historic trade deal that puts Americans and America First." Why India Feels It Can Wait Trade analysts say India’s bargaining power has improved considerably over the past few months.
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