Tuesday 14 / July / 2026
New Delhi; India has declined to rush into an interim trade agreement with the United States, choosing instead to hold out for more favorable terms as Prime Minister Narendra Modi's government gains confidence from expanding trade ties with other partners, a stronger economic outlook and political stability.
Months of negotiations failed to produce a limited trade pact during US Trade Representative Jamieson Greer's visit to New Delhi last month, despite expectations on both sides that an interim agreement was within reach.
According to an Indian government official familiar with the talks, the negotiations broke down after Washington declined to meet New Delhi's key demands. India had sought assurances that it would receive tariff advantages over competitors such as China and guarantees that the United States would not impose additional tariffs after the agreement was concluded.
The stalled negotiations underscore the remaining differences between the two countries as they continue efforts to forge a broader bilateral trade agreement. Indian officials remain committed to further discussions but are signaling that they will not settle for a deal that falls short of the country's long-term trade interests.
Commerce and Industry Minister Piyush Goyal said India cannot implement the proposed trade agreement with the United States until it secures a competitive advantage over competing nations, indicating that tariff-related issues remain the final hurdle in the negotiations.
Responding to an ANI question on US Ambassador to India-designate Sergio Gor's statement that the India-US Bilateral Trade Agreement (BTA) is "99 per cent there", Goyal said the framework agreement has already been finalized, but implementation depends on resolving outstanding tariff concerns.
"We have finalized the framework agreement and announced it as well. The Supreme Court's order regarding tariffs came after that," Goyal said at a press conference at the BJP headquarters.
Explaining the pending issue, the minister said, “We cannot implement the FTA until we secure a competitive advantage. The currently pending issue is that our duties need to be lower compared to those of competing nations; once this is settled, the trade agreement will be implemented.”
His remarks come amid continued efforts by both countries to conclude a bilateral trade pact aimed at expanding market access and strengthening economic ties.
On the recent depreciation of the Indian rupee, Goyal expressed confidence in India's economic outlook and said the currency would stabilize over time.
“The rupee will be back to the normal in the times to come. India will continue to become the fastest developing nation in the world,” he said.
The minister also highlighted India's trade engagement under Prime Minister Narendra Modi, saying the country has expanded its network of free trade agreements significantly over the past decade.
“Nine FTAs have been agreed under Prime Minister Modi's tenure with 38 countries,” Goyal said.
Addressing concerns over a possible El Nino impact on agriculture, Goyal said the government is working on strategies to deal with the situation and pointed to continued support for farmers through fertiliser subsidies.
“The same rate in 12 years... the government gave 90 per cent subsidy,” he said, referring to fertiliser support provided by the Centre.
Looking ahead, the minister said the government's development agenda remains focused on building a developed India.
“Twelve years is just the beginning. We will do the development of the nation -- Viksit Bharat -- along with the people of India,” Goyal said.
