India’s top diplomat, External Affairs Minister S Jaishankar, spoke in New Delhi on Sunday about the country’s trade talks with the United States. He said India still hasn’t found a firm footing on a trade deal with the U.S., a gap that needs closing fast.
The comments were made during the Kautilya Economic Forum, where Jaishankar highlighted that the U.S. is the world’s biggest market. “We must reach a trade understanding with the U.S. because many other countries already have,” he said. “We want it on our terms—our red lines must be respected.”
A big sticking point is U.S. tariffs, which India sees as unfair. The U.S. has levied 50 % tariffs on several Indian goods, arguing that India imports oil from Russia, a factor linked to the Ukraine war. Jaishankar pointed out that the U.S. has set new reciprocal tariff rates, effective from August 27, and that India is negotiating a response that could also involve a 25 % tariff on U.S. goods.
The minister noted that the fight over trade is just one part of a wider global shift. “The coming years will test every country’s resilience,” he said. “We have to address each issue head‑on without letting it turn into a full‑scale conflict.”
Recent Developments
Last month, Commerce and Industry Minister Piyush Goyal wrapped up a high‑level trade visit that the ministry called “positive.” The two sides agreed to push for a quick, mutually beneficial trade pact.
Broader Strategy: Moving Beyond the U.S.
Jaishankar also spoke about India’s broader trade strategy. “Most of our early free trade agreements were with Asian partners—ASEAN, Japan, Korea,” he recalled. “But those economies compete with us directly and, through integrated supply chains, give China better access to their markets.”
“Those are tough corners,” he said. “We need to target free trade agreements with markets that aren’t direct competitors, where there is a deep, stable, predictable economy.”
This explains why India is excited about its new trade deal with the UK and is pushing hard for an EU‑India free trade agreement. “These markets are the right fit for India’s next phase of trade growth,” Jaishankar said.
In the end, Jaishankar emphasized that negotiation is possible. “We have been talking since March,” he said. “We want a fair deal that respects our interests and strengthens our partnership with the United States.”
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