India delays US trade deal, pushes for better terms

New Delhi: India is refusing to rush into a trade agreement with the United States and is seeking more favourable conditions before finalising a deal, officials and analysts said.

The two countries failed to complete an interim trade agreement during US Trade Representative Jamieson Greer’s visit to New Delhi last month.

Both sides had expected a limited deal to be reached, but talks stalled over key demands from India.

Indian officials said New Delhi wants stronger trade benefits, including an advantage over competitors such as China. India is also seeking assurances that Washington will not impose additional tariffs after the agreement.

The Indian government has made it clear that it will not compromise on sensitive issues, especially in the agriculture sector.

The United States has been seeking faster trade concessions from India as President Donald Trump’s administration prepares possible new tariff measures.

Washington believes India should offer greater market access in return for any preferential trade arrangements.

The delay has created uncertainty for businesses, with Indian exports facing the possibility of higher tariffs.

However, analysts say India’s position has become stronger due to rising exports, new international trade partnerships and improved economic conditions.

India’s goods exports increased in recent months despite global challenges and disruptions caused by international conflicts.

The country has also expanded trade cooperation with other major markets. A free trade agreement with the United Kingdom is expected to take effect soon, while negotiations with the European Union are moving forward.

Experts believe these developments have given India more confidence during talks with Washington.

Economic analysts said lower energy risks, improved export performance and a weaker rupee have provided additional support to Indian exporters.

India is also weighing the possibility that some proposed US tariff measures could face legal challenges or political opposition.

Domestic political considerations are also influencing New Delhi’s approach. Indian leaders have stressed the need to protect farmers and small businesses during trade negotiations.