'False', says Goyal as report claims India rejected 'quick' US trade deal

The Centre on Monday (July 13) strongly denied reports suggesting that India had refused to move ahead with an interim trade agreement with the United States, asserting that negotiations remain active and are progressing in a planned manner.

Union Commerce and Industry Minister Piyush Goyal dismissed the report as "false and baseless", saying both countries continue to engage constructively to conclude a mutually-beneficial pact.

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In a post on X, Goyal said his discussions with US Trade Representative Jamieson Greer during the latter's visit to New Delhi in June had reaffirmed the commitment of both governments to conclude a balanced agreement.

"Both sides reaffirmed their commitment to an agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries. Our teams remain fully engaged in achieving this objective," Goyal wrote.

What triggered the clarification?

The government's response came after Reuters reported that India had declined to sign a quick interim trade pact with Washington, preferring to continue negotiations rather than accept terms that could affect sensitive domestic sectors.

According to the report, discussions held during Greer's recent visit to India did not result in an agreement as the two sides remained divided over tariff-related issues.

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Reuters, citing officials familiar with the talks, said India had sought firm assurances that its exports would receive preferential tariff treatment over competitors such as China and that no additional US duties would be imposed after the agreement came into force.

One official quoted in the report said New Delhi was unwilling to compromise on key issues, particularly agriculture, merely to secure an early deal.

Tariff concerns remain central

The report said Washington has been pushing to conclude an initial agreement before a fresh round of tariff measures expected later this month.

At present, most Indian exports entering the US attract a 10 per cent tariff. The Trump administration is also considering additional duties linked to investigations into excess industrial capacity, allegations that India has consistently rejected.

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The US has proposed tariffs of up to 12.5 per cent on imports from several countries, including India, over concerns related to goods allegedly produced using forced labour.

US signals continued engagement

Despite differences over several issues, officials on both sides have indicated that negotiations are continuing.

A US official, speaking on condition of anonymity, said Washington remained committed to reaching an agreement, although no deadline had been fixed. The official, however, described the negotiations as complex, saying discussions had often been slowed by procedural and bureaucratic processes.

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White House spokesperson Kush Desai also said the Trump administration continued to engage with Indian negotiators to finalise what he described as a "historic" trade agreement that advances American interests.

Next round of talks

A senior Indian delegation is scheduled to visit Washington next week to continue negotiations and work on the draft text of the proposed agreement.

The upcoming discussions are expected to gather momentum as the temporary US Section 122 tariff regime, which currently imposes a 10 per cent duty on many imports, expires on July 24.