India has rejected a quick trade deal with the US in recent talks with the Trump administration, news agency Reuters reported on Monday. According to the report, India is placed in a better position than last year following Prime Minister Narendra Modi-led government's recent talks with multiple trading partners. This has built a sense of confidence and eased economic risks, Reuters quoted officials and analysts as saying.
India-US trade deal
India and the United States have been negotiating a trade deal for more than a year. At times, both sides have claimed that an interim agreement is nearly finalised and that a formal deal would be announced within weeks. However, these efforts have been repeatedly disrupted by explosive statements from US President Donald Trump and other senior officials involved in the talks. Last year, it was reported that the Trump administration was seeking greater access to India’s agriculture sector, a sector analysts have long described as the most sensitive for Indian farmers, who have depended on it for their livelihoods for generations.
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After months of talks, the two nations failed to finalise an interim trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi last month, despite expectations from both sides that a limited deal was within reach.
Core issues needs to be addressed first: India
According to the Reuters report, there was no consensus reached between the two parties as the American side did not offer assurances on New Delhi's key demands: a tariff advantage over competitors such as China and no new US levies after the deal, said an Indian government official aware of the talks.
"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 said.
However, an official statement from either side is still awaited.
India's tough stance on trade deal
Washington had hoped for quick trade concessions from a strategic partner as President Donald Trump prepares new tariffs likely to come into effect later this month, officials and analysts said, while India's holdout risks higher levies on its exports and prolonged uncertainty for businesses.
A day after talks with Greer, Indian Commerce Minister Piyush Goyal said the US deal would not be implemented unless an advantage is ensured, indicating New Delhi's hardened position and lack of urgency despite the risk of higher tariffs.
Like most countries, the bulk of goods from India currently face a 10 per cent US tariff. But the Trump administration is expected to introduce steeper tariffs later this month through probes into excess industrial capacity. India has denied US charges of surplus capacity.
(With inputs from Reuters)
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