‘Banduk rakhke kabhi negotiate…’: Piyush Goyal’s bold swipe as India-US finalise trade pact amid tariff threat

An interim trade deal between India and the United States could be concluded within the 90-day tariff suspension period announced by the Trump administration, provided it benefits both nations, an official stated on Friday.

The official also mentioned that India and the US have already agreed on the terms of reference (ToR) to initiate negotiations for the agreement, PTI reported.

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"A lot of possibilities are there to finalise low-hanging fruits. A lot of possibilities are there to finalise the form and shape of the BTA," the official said, adding that everything is possible in 90 days if it is a “win-win” for both sides.

India and the US are engaged in finalising the trade agreement. Both sides have targeted to conclude the first phase by fall (September-October) this year with an aim to more than double the bilateral trade to USD 500 billion by 2030 from about USD 191 billion currently,PTI reported.

"The work has started. India is far ahead of other countries in negotiating a trade deal," the government official said, adding that India is in continuous engagement with the US.

A lot of negotiations will happen through video conferencing and there could be some physical visits.

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The US, on April 2, announced an additional 26 per cent tariff on Indian goods entering the US. But on April 9, the Trump administration announced the suspension of these on India for 90 days until July 9 this year. However, the 10 per cent baseline tariff imposed on the countries will continue to remain in place.

The official added that US Vice President J D Vance is also likely to travel to India.

Meanwhile, earlier in the day, Commerce and Industry Minister Piyush Goyal said that India is in continuous dialogue with the US on the proposed agreement, and the government will safeguard the nation's and public interests, as it is never advisable to take any step in undue haste.

He said all trade talks of the country are progressing well in the spirit of 'India first' and to ensure the pathway to Viksit Bharat 2047.

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"Humne pahle bhi kai baar kaha hai ki hum banduk rakhke kabhi negotiate nai karte hain. Sammay ki pabandiyaan acchhi rahti hain ki wo protsaahit karti hain ki baat teji se ho, lekin jab tak desh hit aur jan hit ko hum surakshit na rakh saken, tab tak kabhi bhi jaldbazzi karna accha nai hai (I have said it many times earlier, we do not negotiate at the gunpoint. Time restrictions are good as they encourage us to negotiate swiftly, but until we are able to protect the interests of the country and people, it is never good to be hasty)," Goyal told reporters.

Talking at another event on a possible deadline to conclude talks for the India-US pact, he said countries always need to have timelines or deadlines for whatever work they do.

"But in the case of free trade agreements, these are indicative timelines. We aspire for those timelines. But at the end of the day, it has to be a win-win for both sides. It has to be a fair, equitable and balanced solution. Just to meet a deadline, you cannot compromise national interest," he added.

From 2021-22 to 2023-24, the US was India's largest trading partner. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade.

In the fiscal year 2023-24, India recorded a trade surplus of USD 35.32 billion in goods with the United States. This marked an increase from the USD 27.7 billion surplus in 2022-23, USD 32.85 billion in 2021-22, USD 22.73 billion in 2020-21, and USD 17.26 billion in 2019-20.

India's top exports to the US in 2024 included drug formulations and biologicals (USD 8.1 billion), telecom equipment (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), gold and other jewellery made of precious metals (USD 3.2 billion), cotton ready-made garments and accessories (USD 2.8 billion), and iron and steel products (USD 2.7 billion).

On the import side, key items from the US were crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal and coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electrical machinery (USD 1.4 billion), aircraft and spacecraft components (USD 1.3 billion), and gold (USD 1.3 billion).

(With inputs from PTI)