India-US Trade Deal: India on Friday dismissed reports suggesting that it was holding off bilateral engagement or delaying a trade deal with the United States, stating the discussions between the two nations are ongoing for a 'mutually beneficial trade agreement'.
"We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement," the commerce ministry said.
The clarification comes after a Reuters report claimed that India may delay signing a trade deal with the United States for several months while taking a "wait-and-watch" stance on tariff policy.
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US Launches Unfair Trade Probe On Several Economies, Including India
The development comes soon after the administration of US President Donald Trump launched fresh trade investigations targeting around 16 economies, including India, over alleged "unfair trade practices."
The probe focuses on concerns such as forced labour in imports. The United States has also initiated a separate investigation to examine excess industrial capacity among 16 major trading partners.
Officials said the Section 301 investigation could potentially lead to new tariffs on several countries, including India, China, the European Union, Japan, South Korea, and Mexico, as early as this summer.
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India To Hold Off On US Trade Deal: Report
According to a Reuters report, negotiations lost momentum after the US Supreme Court struck down Trump's tariffs in late February. Since then, substantive talks between the two sides have stalled, partly as Washington is focusing on the escalating conflict with Iran.
"We are not in a hurry to sign any deal," Reuters quoted a source as saying. "The new investigation is a pressure tactic to force countries into signing deals after the court order. It's a spanner in the works," it added
The report further noted that India is largely taking a 'wait and watch' approach to tariff policy.
However, the commerce ministry dismissed the claims, stating that talks between the two countries are continuing for a 'mutually beneficial trade agreement'.
India had initially aimed to sign an interim deal in March, followed by a comprehensive agreement later this year.