Commerce and Industry Minister Piyush Goyal has firmly stated India's position on the ongoing trade negotiations with the United States, emphasizing that the country will not sacrifice the interests of its farmers, fishermen, and dairy sector for any agreement. The minister made these remarks while speaking at the Udyog Samagam 2025 conference.
Protecting India's Sensitive Sectors
India is negotiating a good proposed bilateral trade agreement with the US, but Minister Goyal was clear that the government's priority is a fair and balanced outcome. "We are working for a good trade deal in the interest of India. At the same time, India is not going to compromise the interests of our farmers, fishermen, workers, labour, and our dairy," he declared. He reiterated that the government is prepared for all scenarios, indicating that a deal could be finalized anytime, from tomorrow to next year, provided it meets India's criteria for fairness.
Navigating Trade Challenges and Exploring New Markets
The push for a balanced deal comes amidst specific trade challenges. Goyal revealed that India is actively seeking new markets, including Russia, for its fishery sector, which has been adversely affected by the steep tariffs imposed by the US. This move highlights India's strategy to diversify its export destinations to protect its domestic industries.
The trade negotiations have seen significant progress, with five rounds of talks completed so far. A team of Indian officials, led by Commerce Secretary Rajesh Agrawal, was in Washington for a three-day meeting that concluded on October 17. An official involved in the process noted that another round may not be necessary, as the US side needs to respond to India's proposals. The official praised India's negotiation strategy, describing it as "the most comprehensive, most detailed, WTO-compliant compared to any other country," and emphasized the cautious approach taken to safeguard sensitive sectors.
The Stakes and Future Prospects
The proposed trade pact is critically important for the bilateral relationship, which has been under strain since the Trump administration imposed a steep 50 per cent tariff on Indian goods, including a 25 per cent additional import duty for purchases of Russian crude oil. The core objective of the deal is to more than double the bilateral trade to USD 500 billion by 2030 from the current level of approximately USD 191 billion.
The economic relationship remains robust despite the hurdles. The US was India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion. However, recent commerce ministry data shows the impact of US tariffs, with India's merchandise exports to the US declining by 11.93 per cent to USD 5.46 billion in September.
There is optimism from the highest levels. US President Donald Trump has stated that the two nations are "pretty close" to reaching a "fair trade deal" and has hinted at lowering the tariffs on Indian goods at "some point." Both sides have announced an intent to finalize the first part of the agreement by the fall of 2025, setting a clear timeline for the conclusion of these crucial talks.
