India–US Trade Deal Nears Closure, Says Piyush Goyal | Key Takeaways
India’s Commerce and Industry Minister Piyush Goyal has said negotiations on the India–US trade agreement are “moving towards closure”, while also outlining how New Delhi successfully concluded its recently signed Free Trade Agreement (FTA) with the European Union. Speaking to Hindustan Times three days after the India–EU deal was signed, Goyal shared insights on ongoing talks, future agreements, and India’s evolving trade strategy.
India–US Trade Talks: ‘Moving Towards Closure’
Describing the proposed India–US trade deal as “positive” and a “good deal”, Goyal said discussions were progressing without being bound by rigid timelines.
“We are actively engaged. We never do any deal with a deadline in mind. When both sides are satisfied, the date will be announced,” he said.
He added that most hurdles have been cleared. “I don’t think there are any sticky issues left to be resolved. We can now look at moving towards closure.”
India and the US have been negotiating since early last year, though talks slowed in August after former US President Donald Trump imposed a 50% tariff on Indian goods, partly as a penalty for India’s oil purchases from Russia amid the Ukraine conflict. Negotiations have since resumed, alongside some positive signals from Washington.
Trade Deal with Canada Next? ‘They Are Very Keen’
Goyal also addressed the possibility of a trade agreement with Canada, with Prime Minister Mark Carney expected to visit India in March.
“They are very keen to speed it up. We are working on the terms of reference, but we have to start from scratch,” he said.
On whether recent FTAs with the UK and EU could serve as templates, Goyal cautioned against direct comparisons. “Each deal stands on its own legs. Conditions, economic size, and national interests differ for every country.”
India–EU Deal: What Happens Next
Addressing the India–EU agreement, Goyal rejected the view that the EU became more receptive due to global trade disruptions caused by US tariffs.
“They have been consistent since 2022, when negotiations began. They were sincere and serious throughout,” he said.
While talks slowed in 2024 due to elections in India and the EU, Goyal said the bloc remained sensitive to India’s concerns. He expressed confidence that the deal would be ratified by the European Parliament in 2026, citing support from key EU leaders, including the German Chancellor.
How Modi-Led India Negotiates Trade Deals
Goyal said India’s recent success reflects a fundamental shift in how the country engages globally.
“One of the biggest differences between the past and today is that India is a respected country. There is political stability, macroeconomic stability, and decisive leadership,” he said.
India now negotiates from a position of strength, he added, focusing on future potential rather than current size. “We are not negotiating today’s $4 trillion economy, but India’s $30 trillion economy in 2047. That is what attracts our partners.”
Manufacturing Push and Export Growth
On the impact of the EU deal on manufacturing, Goyal said the benefits would be substantial.
“In most sectors, duties become zero from day one. Of the $35 billion in labour-intensive exports, $33.5 billion will enjoy zero duty immediately,” he said.
He highlighted the opportunity in textiles, noting that India currently exports $7 billion worth to the EU, compared to Bangladesh’s $30 billion. “With zero duties now, textile exports alone can reach $40–50 billion.”
Addressing concerns over quality, Goyal said higher demand would drive improvements. “If we can export $7 billion, we can export $70 billion. Quality improves as demand grows.”
He added that the government will continue pushing manufacturing, services, innovation, R&D, startups, and logistics, while strengthening trade ties with aligned partners, particularly in the developed world.
