India and US Trade Deal Talks Show 'Fantastic Progress', Says Minister

Piyush Goyal expresses optimism about reaching a bilateral trade agreement with the US amid ongoing negotiations and potential tariff threats.

India's Commerce Minister, Piyush Goyal, recently announced "fantastic progress" in the ongoing trade deal discussions with the United States during his visit to London. His comments followed the signing of a significant free trade agreement with the UK on Thursday, marking a positive step for India's trade ambitions.

Despite previous setbacks and missed deadlines to finalize the US-India trade deal, Goyal remains hopeful. US President Donald Trump initially set 1 August as a critical deadline for various countries, including India, to finalize agreements or face the introduction of high tariffs. These tariffs, announced on 2 April, had been temporarily paused but were reestablished with the extended deadline.

In his discussions, Goyal revealed that Indian delegations have frequently traveled to the US to iron out the deal's finer points. While Trump indicated that he believes that the two nations are close to an agreement, key issues remain unresolved.

One of the main sticking points for India is the US demand for reduced tariffs on agricultural and dairy products. When questioned about this negotiation hurdle, Goyal remarked that discussions are best held in private. He noted that if smaller sector-specific agreements could be established, India might still aim for a comprehensive deal.

Expressing confidence in achieving an agreement before the looming deadline, Goyal reiterated similar sentiments in a conversation with Bloomberg. However, the path forward is still fraught with challenges, especially as the US seeks greater access to India's agricultural market, which the country has traditionally safeguarded to protect its farmers and food security.

Historically, the US was India's largest trading partner, with bilateral trade amounting to $190 billion. Trump and Indian Prime Minister Modi have since set a target to increase this figure to $500 billion. Though India has made strides in reducing tariffs on select products like Bourbon whiskey and motorcycles, the US still faces a significant $45 billion trade deficit with India, an issue that remains a priority for the current administration.