India refuses to fast-track US trade deal, rejects rushing into agreement
India has refused to fast-track an interim trade agreement with the United States after recent negotiations failed to resolve key differences, insisting it will only
India has refused to fast-track an interim trade agreement with the United States after recent negotiations failed to resolve key differences, insisting it will only sign a deal that serves its long-term interests, according to a Reuters analysis. Despite months of discussions, India and the US were unable to finalise a limited trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi last month. Reuters reported that both sides had expected an interim pact to be within reach, but negotiations stalled over India's core demands. According to an Indian government official familiar with the talks, Washington did not provide assurances on two major issues: securing a tariff advantage over competing exporters such as China and ensuring that no additional US tariffs would be imposed after the agreement is signed. "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," the official told Reuters.
The report said Washington had hoped to secure quick trade concessions from India before President Donald Trump's proposed tariff measures were introduced later this month. However, India's decision to delay an agreement raises the possibility of higher tariffs on Indian exports and prolonged uncertainty for businesses. A day after negotiations with Greer, Commerce and Industry Minister Piyush Goyal publicly stated that India would not implement a trade agreement unless it offered a clear advantage, signalling New Delhi's tougher negotiating stance despite the risks of additional US tariffs. According to Reuters, most Indian exports to the United States are currently subject to a 10% tariff. The Trump administration is expected to introduce steeper tariffs later this month through investigations into excess industrial capacity. Washington has also proposed tariffs of up to 12.5% on several countries, including India, over allegations related to forced labour in supply chains, charges India has denied.
Improving economy boosts India's bargaining power Trade analysts told Reuters that India's stronger economic performance has significantly improved its negotiating position. India's merchandise exports rose by around 15% during April-June compared with the same period last year, despite disruptions caused by the Iran conflict. The increase was driven largely by higher-value petroleum shipments. Exports to Gulf countries recovered to pre-war levels, rising to $5.3 billion in May from $2.62 billion in March, after exporters shifted to alternative shipping routes. Exports to the United States also increased, reaching $17.29 billion during April and May, Reuters reported. India has also diversified its trade partnerships. A free trade agreement with the United Kingdom is expected to come into effect this month, while negotiations for a trade deal with the European Union are progressing, with an agreement anticipated early next year.
The BriefWire