‘Deal dependent upon…’: India indicates no compromise on red lines for US trade pact; ‘we cannot overlook some..’
India-US trade deal negotiations are contingent on how each country deals with ‘red lines’ sources have said. The US has imposed 50% tariffs on India for its exports to America, effective today. The high tariffs – 25% ‘reciprocal’ + 25% for India’s crude oil trade with Russia – come as stalemate on the trade deal continues.According to a PTI report quoting sources, the progress of India-US trade pact discussions will be determined by how both nations address their respective concerns and limitations.Bilateral trade agreement (BTA) discussions between India and the US commenced in March. After completing five rounds of negotiations, the scheduled sixth round, where the US delegation was due to visit India from August 25, has been postponed.Also Read | ‘Country first, commerce later’: Indian refiners unlikely to stop Russia crude oil trade under US pressure; ‘message from government is…’
India firm on its red lines on US trade deal
India has explicitly stated its position regarding the protection of farmers, fishermen and small-scale industries, with no room for compromise on these matters.Prime Minister Narendra Modi has expressed his firm commitment to safeguard the interests of farmers and fishermen, emphasising that India will remain steadfast in protecting their welfare.“Ultimately there are some red lines that we cannot overlook, the deal is dependent upon how each party addresses those red lines. For us it has been clearly spelt out,” the source told PTI.
India’s top 10 exports to US face high tariffs
Under the suggested BTA, the United States aims to secure lower tariffs for agricultural products including corn, soybeans, apples, almonds and ethanol, whilst seeking enhanced market access for its dairy sector. However, India stands firm in opposing these requests, citing concerns over the welfare of its small-scale farming community.India has maintained its position of not offering tariff concessions in trade agreements, as evidenced by its previous arrangements with nations like Australia and Switzerland.Also Read | India not bowing to Trump’s pressure! As 50% US tariffs kick in, here’s how government aims to counter impact – from GST cuts to next-gen reformsThe agreement aspires to elevate bilateral trade to $500 billion by 2030, a significant increase from the present $191 billion.Both nations have set their sights on finalising the initial phase of the BTA by fall (September-October) of 2025.The trade figures for 2024-25 show bilateral exchanges between India and the US reached $131.8 billion, comprising $86.5 billion in exports and $45.3 billion in imports.During April-July of 2025-26, the US emerged as India’s principal trading partner, with bilateral trade valued at $12.56 billion.
