'India still committed to a fair deal'

India remains intensely engaged with the US to clinch the comprehensive bilateral trade agreement by autumn 2025 despite President Donald Trump's announcement of 25% tariffs plus penalties starting August, people aware of the matter said on Wednesday.

- Rajeev Jayaswal

In a brief statement, the commerce ministry said it had “taken note” of Trump's statement and was studying its implications while reaffirming India’s commitment to a “fair, balanced and mutually beneficial” trade deal that protects farmers, entrepreneurs and small businesses.

“The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,” the ministry said, adding that it “will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”

Indian officials and experts pushed back against Trump's characterisation of excessive trade barriers, arguing that his focus on goods trade deficit ignores the broader economic relationship where the US earns tens of billions more annually from services, education, and defence deals, and cited New Delhi's recent free trade agreements with developed economies such as Australia and the UK to demonstrate India’s willingness to open up its market with protections for its vulnerable populations

People familiar with the negotiations said New Delhi expects Washington to follow Trump's announcement with a formal letter that would be analysed and responded to appropriately. The Indian negotiating team - which has held five rounds of in-person discussions with its American counterparts - will in the meantime continue talks for a balanced deal, they added.

One of the people aware of the matter pushed back against Trump's characterisation of India as maintaining excessive trade barriers, citing the recently signed free trade agreements with other developed economies including Australia and the United Kingdom where tariffs on most items were slashed.

“Hence, President Trump's generalisation that Indian tariffs are far too high, is not correct,” the person said. “FTAs are win-win, and not one-sided.”