As talks between India and the United States (US) turn complex on issues around agriculture and automobiles, Commerce Minister Piyush Goyal reiterated that Free Trade Agreements (FTAs) must be balanced and reciprocal, indicating that New Delhi will not agree to any trade deal that undermines domestic interests.
“An FTA is two-sided trade. You can’t ask us to open our market but refuse to accept Indian products,” Goyal said, emphasising that trade must work both ways.
Speaking at an interaction in Srinagar, the minister reassured Indian traders and businesses that the Narendra Modi-led government’s top priority remains safeguarding national interest.
“Traders need not worry. Whatever FTA we sign will keep the interests of Jammu & Kashmir and the entire country in mind,” he added.
“We are promoting ‘Vocal for Local’, and making sure that local goes global. Our approach supports both ‘Make in India’ and ‘Make for the World’,” said Goyal.
The minister's re-assertion comes after June 4 when he said that India does not enter trade agreements based on deadlines, but on mutual benefit and national interest.
Moreover, India, on June 4, also informed the World Trade Organisation (WTO) that it plans to impose retaliatory tariffs on selected US-origin products in response to America’s recent duty hike on automobiles and certain auto parts.
While, the Indian side is still hopeful of a trade deal before July 9, New Delhi has toughened its position on issues related to automobiles, dairy and agriculture, especially genetically modified (GM) crops, as in-person negotiations in Washington ended after a week since the Indian team arrived there on June 27.
New Delhi is looking to secure an exemption from Donald Trump's 26 percent tariffs by sealing a deal before July 9, it is also pushing for significant tariff concessions for its labour-intensive exports such as textiles, leather and footwear.
The US, on the other hand, want greater access for its farm and dairy goods, sectors that are sensitive for India.
Without a mini-deal, Indian exports could face a 26-percent reciprocal tariff from the US.
Moneycontrol earlier reported that a mini-trade deal between India and the United States requires a political push from President Donald Trump and Prime Minister Narendra Modi to reach a middle-ground on outstanding issues.
India has been negotiating a scaled-down version of the first tranche of a Bilateral Trade Agreement (BTA) with the US to ensure that it escapes Trump's reciprocal tariffs. The deadline for a more comprehensive BTA is this year’s fall.
US President Donald Trump on June 5 announced that his administration will begin dispatching letters to 10 to 12 countries starting Sunday, outlining reciprocal tariff rates.
These letters, Trump said, will explain what each country is expected to pay under his proposed new tariff regime. Describing them as “take it or leave it” offers, he added that these will be delivered by the administration’s self-imposed July 9 deadline to broker deals.
The higher tariffs will be implemented from August 1.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
