In a firm and confident message to Washington, Commerce and Industry Minister Piyush Goyal has declared that India’s ongoing trade discussions with the United States are progressing “on our terms”, signalling New Delhi’s determination to prioritise national economic interests even amid strategic ties with the world’s largest economy.
Key Highlights From Goyal’s Statement
Speaking at an industry event on Tuesday, Goyal underlined:
- India is no longer a hesitant negotiator: “Earlier, trade talks used to be about appeasing powerful nations. Now, India sets the terms keeping its industries, farmers, and MSMEs at the centre.”
- Mutual benefit as cornerstone: The Minister reiterated that India seeks agreements rooted in reciprocity, transparency, and equitable market access, not compromises.
- US acknowledges India’s leverage: He claimed that Washington understands India’s position as a trusted strategic partner, a growing consumer market, and a resilient manufacturing hub.
Recent Developments In India-US Trade Relations
| Date | Event |
|---|---|
| June 2023 | India-US resolve six WTO disputes, remove retaliatory tariffs on select US products |
| Sep 2023 | First India-US Strategic Trade Dialogue focuses on critical and emerging technologies (CET) |
| March 2024 | Bilateral Trade Policy Forum meets to discuss market access in agriculture, ICT, pharmaceuticals |
| July 2025 | Current trade talks under review ahead of potential limited trade pact announcement |
Trade Balances And Sectoral Stakes
India’s merchandise exports to the US crossed $110 billion in FY24, while imports stood at around $60 billion, resulting in a significant trade surplus for India. Key sectors include:
- Information Technology (IT & ITES)
- Pharmaceuticals and generics
- Textiles and apparel
- Agricultural goods (spices, seafood, rice)
- Clean energy components and electronics
Conversely, India imports critical defence hardware, crude oil, liquefied natural gas (LNG), and advanced semiconductor equipment from the US.
Pivot In India’s Trade Strategy
Minister Goyal outlined that the current trade talks prioritise:
- Technology Transfer With Intellectual Property Safeguards
- Fair Agricultural Market Access
- Tariff Reductions Only With Reciprocal Gains
- Smooth cross-border movement for Indian IT professionals under H-1B and L-1 visa frameworks
He asserted that India has moved away from signing Free Trade Agreements (FTAs) under external pressure, focusing instead on comprehensive economic partnerships with clear national gains.
Expert View
Dr. Arvind Panagariya, Trade Economist:
“India’s tough stance is rooted in political confidence and global supply chain realignments. It allows India to negotiate from a position of strength while protecting its domestic market.”
Prof. Laura Adams, US-Asia Trade Policy Analyst:
“The Biden administration needs India to counterbalance China economically and geopolitically. This gives New Delhi leverage but also responsibility to act as a stable partner.”
Ongoing Negotiations: Priority Areas
| Focus Area | India’s Stand |
|---|---|
| ICT Market Access | Seeks reduction of US non-tariff barriers on Indian IT services |
| Agriculture | Limited opening for US dairy, with strict SPS conditions |
| Pharmaceuticals | Approval reciprocity for Indian generic drugs |
| Defence & Aerospace | Joint production deals under Make in India |
| Clean Energy | Tax incentives for Indian solar and green hydrogen exports |
Impact On India’s Broader Trade Diplomacy
India has recently signed CEPA with UAE and EFTA nations, ongoing negotiations with the UK and EU, and is in exploratory talks with the Gulf Cooperation Council (GCC) for a trade pact. The confident tone with the US indicates:
- A shift from defensive to assertive trade diplomacy
- Alignment of trade strategy with the Atmanirbhar Bharat initiative
- Leveraging India’s demographic dividend and geopolitical importance to extract better terms
Comparative Snapshot: India’s Major Trade Talks Status
| Partner | Status (July 2025) | Expected Gains |
|---|---|---|
| US | Limited trade pact under negotiation | Technology access, services exports boost |
| EU | Textiles, pharma, mobility agreement pending | Duty-free market access |
| UK | Nearing conclusion | Agriculture, auto parts, services |
| GCC | Early stages | Energy security, food processing exports |
Political And Economic Implications
- Strengthens India’s domestic political narrative of self-reliance and global respect
- Signals to industry that market access commitments will not undermine MSMEs and farmers
- Positions India as an equal strategic and economic partner rather than a market for foreign dumping
Social Media Reactions
- @PiyushGoyalOfficial: “India is confident. Trade talks with US are on our terms – we will ensure our farmers, MSMEs and professionals benefit.”
- @USIBC: “Constructive discussions underway between India and US. A stable, open trade environment benefits both nations.”
- @PolicyWatchIndia: “India’s trade stance reflects strategic maturity. Negotiating from a position of strength is crucial for equitable growth.”
Conclusion
Minister Piyush Goyal’s assertion that discussions with the US are progressing “on our terms” marks a significant shift in India’s trade negotiation approach. As both nations navigate geopolitical realities and domestic economic priorities, the outcome of these talks could redefine the bilateral economic landscape for years to come.
Disclaimer: This news content is based on ministerial statements, policy updates, and expert analysis. Readers are advised to interpret trade developments within broader diplomatic contexts. The publication assumes no responsibility for investment or policy decisions taken based on this content.
