India is demanding lower tariff rates than its competitors before it will implement a bilateral trade agreement with the United States, according to Commerce and Industry Minister Piyush Goyal. The comments, reported by Bloomberg and local news agency ANI, signal that key issues remain unresolved despite both countries having agreed on a framework for the deal and expressing optimism about its completion. Goyal stated at a press briefing that India's duties need to be lower than those of rival exporting nations before the pact can take effect.
Framework finalised, but tariff hurdle remains
Goyal noted that the framework for the agreement had been finalised before the U.S. Supreme Court ruled in February that President Donald Trump's previous tariff policy was unlawful. The minister's remarks come weeks after Indian Prime Minister Narendra Modi met Trump on the sidelines of the G7 summit in France, where both leaders struck an upbeat tone and Trump said Washington and New Delhi were 'very close' to a deal.
Negotiations drag on amid sensitive issues
Despite repeated signals from both sides that a deal is within reach, negotiations have extended longer than expected. Discussions have been complicated by disagreements over tariffs, market access, and protections for politically sensitive industries. India has also sought safeguards against future U.S. trade investigations and tariff actions. The proposed agreement is seen as a key step in strengthening economic ties between the world's two largest democracies, helping to diversify supply chains and expand bilateral trade, but officials are now focused on resolving the outstanding tariff differences before moving into the implementation phase.