India, US Start Drafting Trade Deal; Goyal Emphasizes: No Agreement Under Pressure

The India-US trade negotiations, marked by complex discussions and differing positions, are progressing toward a possible agreement, with negotiators from both sides reportedly working on the draft text of the trade deal. A senior government official in New Delhi emphasized that while language discussions have begun, any final announcement will require political convergence at higher levels. The negotiations have focused on non-tariff barriers, agriculture, and reciprocal tariffs under Section 232, and virtual sessions continue, with the potential for US negotiators to visit India soon. The official noted that while differences exist, there is growing convergence between the two sides.

Commerce Minister Piyush Goyal, speaking at the Berlin Global Dialogue, underscored India’s red lines and reiterated that the country does not conduct trade deals under pressure, deadlines, or with a “gun to the head.” He described India’s approach as cautious and strategic, emphasizing long-term national interests, especially for a country with a young and aspirational population. Goyal stressed that trade deals are more than immediate tariff considerations—they involve trust, relationships, and future economic planning. India aims to secure a deal that benefits its long-term growth trajectory, acknowledging that it will become a $30-trillion economy in the next 20–25 years. The trade deal is intended to protect national interests while providing sustainable opportunities for the Indian economy.

The official clarified that the prospective India-US trade agreement would not follow a conventional Free Trade Agreement (FTA) model, as it involves reciprocal tariffs not aligned with WTO’s Most-Favoured-Nation (MFN) provisions. Unlike typical MFN-based deals, the agreement would be structured differently to accommodate both countries’ specific trade priorities. Efforts are underway to address the expanding Section 232 tariffs that the US has imposed on Indian exports, particularly in sectors such as oil and agriculture. Goyal emphasized that India will not rush into any agreement or compromise on long-term strategic objectives for short-term gains, stressing that trade deals are a matter of careful negotiation.

India’s stance reflects a broader policy of maintaining strategic autonomy and negotiating from a position of strength. Goyal explained that India’s trade strategy is not reactive but forward-looking, seeking to create a resilient domestic economy while exploring new markets and strengthening internal demand. The minister highlighted that India does not let external pressures or geopolitical concerns dictate its friendships or trade relationships, citing Russia and other global partners as examples. He maintained that India evaluates trade and strategic decisions strictly on national interest rather than external influence.

Goyal also addressed the context of US sanctions on Russian oil and highlighted Germany and the UK’s exemptions, questioning why India should be singled out. He reiterated that trade agreements are long-term instruments that go beyond tariffs to encompass trust, market access, and cooperative economic relationships. India’s approach balances negotiation pragmatism with long-term economic foresight, ensuring that agreements align with the country’s growth, development, and national interest.

The bilateral trade talks, which began in March 2025, have seen five rounds so far. Goyal expressed optimism that ongoing negotiations would culminate in a fair and equitable trade deal benefiting both countries. While challenges remain, India’s position is clear: trade agreements will be negotiated strategically, safeguarding national interests, promoting sustainable economic growth, and strengthening global partnerships without yielding to undue pressure or immediate deadlines. This measured and deliberate approach reflects India’s broader policy of long-term economic planning and global engagement.