India will sign a trade deal with the United States only when its own economic interests are safeguarded and it can maintain an edge through tariffs against rival countries, Commerce and Industry Minister Piyush Goyal stated on Friday, emphasizing the priority given to Indian farmers and industries.
India has never negotiated any trade pact—or even part of one—under time constraints or external pressure," he said in an interview with The Times of India (TOI), referring to the July 9 deadline set by U.S. President Donald Trump for finalizing trade deals. "We must safeguard our country's interests and make sure the agreement offers long-term preferential benefits compared to what others receive. A balanced and beneficial arrangement can lead to positive outcomes. However, instead of rushing against fixed timelines, we remain focused solely on protecting national priorities.
Trump had implemented retaliatory tariffs against almost 100 nations but consented to a three-month hold, set to conclude on Tuesday. India faced imposition of 26% retaliatory tariffs.
Doubts remain about whether India and the US will be able to reach consensus on an initial package or limited pact ahead of broader negotiations for a full-fledged bilateral trade deal expected to begin in September-October following discussions between President Trump and Prime Minister Narendra Modi.
India views reducing import duties on agricultural commodities like corn, soybeans, and milk-based items with caution. Although Goyal refrained from giving details, he emphasized that New Delhi will safeguard the farming and dairying industries. "All concerns are considered seriously," he stated, adding further: "The welfare of our country's farmers remains central to all trade deals undertaken during Prime Minister Modi's tenure—whether they're signed with the United Kingdom, Australia, Mauritius, members of EFTA, or even the UAE."
The government has not yet provided significant concessions on key agricultural goods, although this remains a primary concern for the United States.
Some government officials mentioned that the U.S. demands lacked clarity from India’s perspective, but according to Goyal, India's main emphasis in the trade agreement was securing tariff relaxations in labor-intensive industries. The country aimed to gain duty reductions on products like leather goods, footwear, textiles, and certain automobile components, in exchange for lowering duties on imported vehicles and American whisky.
Additionally, India aims to protect itself from potential changes in tariffs, including those targeting specific sectors, all the while benefiting from reduced duty rates when compared to nations like China and Vietnam.
So far, only a few nations such as the United Kingdom, China, and Vietnam have entered into trade agreements with the United States.