New Delhi is reassessing its proposed interim trade agreement with Washington, seeking stronger tariff guarantees to keep Indian exports competitive as it accelerates negotiations with other trading partners.
India is reconsidering its proposed interim trade agreement with the United States as the tariff environment shifts, Commerce and Industry Minister Piyush Goyal said in New Delhi. Speaking to industry representatives, Goyal said the framework announced in February is being reviewed so that any final arrangement reflects changed circumstances and keeps Indian exports competitive in the American market.
According to Goyal, the main issue is whether the United States will offer tariff terms strong enough to give Indian goods a clear edge over rivals. Business Standard reported earlier that he had said India would not move ahead unless Washington provided the tariff benefits and legal backing needed to secure that advantage. The minister has not publicly set out the precise changes that prompted the reassessment, but he has made clear that the evolution of US tariff policy is central to the talks.
Negotiations between the two sides have continued alongside that caution. The Economic Times reported that Goyal and US Trade Representative Jamieson Greer discussed speeding up a mutually beneficial interim deal on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee, with both sides seeking to resolve outstanding issues. Business Standard also reported that the two countries had recently concluded a two-day ministerial round of talks covering market access, digital trade and non-tariff barriers, without indicating that a final settlement had been reached.
At the same time, India is broadening its trade agenda. Goyal said the government is working on agreements with Israel, Chile, the Gulf Cooperation Council and the Eurasian Economic Union, while talks with Canada are moving faster and discussions with the Southern African Customs Union are expected to begin soon. Negotiations with Mexico are due to start next week, and the trade ministers of the UK and Canada are scheduled to visit India, with the UK minister’s trip including a meeting of the India-UK Joint Economic and Trade Committee after the bilateral agreement came into force in July. Goyal said several countries are now keen to secure trade deals with India.
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