Reuters: India Says Trade Agreement Not for Deadline Compromise, National Interest First

Reuters, New Delhi, July 5 - Indian Minister of Commerce and Industry Piyush Goyal has clearly stated that India will not hastily sign a trade agreement to meet a deadline. Previously, the United States threatened to impose a 26% tariff on Indian goods exported to the U.S. if an agreement could not be reached by July 9.

Indian Trade Minister Piyush Goyal emphasized on Friday that India will only sign a trade agreement if it is in the national interest, and will not yield to time pressure. He said free trade agreements must be "win-win" agreements that are mutually beneficial, with national interests always being paramount. Despite U.S. President Trump's threat to impose tariffs starting next week on countries that fail to reach an agreement before the April deadline he set (including a 26% tariff on Indian goods), after the Indian negotiating team ended their extended visit in Washington this week, there are still differences between the two sides on tariffs on automotive parts, steel, and agricultural imports. India insists on protecting its agriculture and dairy industry and demands better access to the U.S. market than countries like Vietnam and China.

Meanwhile, India has proposed retaliatory tariff measures against the U.S. at the World Trade Organization, stating that the U.S. 25% tariff on automobiles and parts will affect Indian exports worth $2.89 billion. Data shows that although Prime Minister Modi and Trump had agreed to increase bilateral trade from $19.1 billion in 2024 to $50 billion by 2030, the trade volume between the two countries increased from $14.2 billion in 2019 to $19.1 billion in 2024, which is far below the required growth rate. Analysts point out that India's firm stance in key areas reflects its determination to protect domestic industries and seek equal trade conditions, while the U.S. imposed tight deadlines have exacerbated the complexity of negotiations. Indian officials emphasized that the agreement will only be accepted when it is fully finalized and in line with national interests.

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