Piyush Goyal says no India-US trade deal without safeguards for farmers, MSMEs

Union Commerce Minister Piyush Goyal on Saturday (October 18) made it clear that there will be no trade agreement with the US unless the interests of the nation, including India’s farmers, fishermen and the country’s MSME sector, are addressed.

‘Trade talks progressing cordially’

Speaking to reporters, Goyal said that although trade talks with the US are going on cordially, such talks are never bound by deadlines. He made the remarks upon being asked when India can expect “good news” regarding the tariffs imposed by the US on Indian goods.

“I believe the talks are progressing in a very cordial atmosphere, and I have said many times that free trade agreements or trade talks are never based on deadlines,” said Goyal.

“There is no agreement unless we fully address the interests of the nation - India's farmers, India's fishermen, India's MSME sector. The talks are progressing very well. The talks are ongoing, and we will definitely inform you when we reach a decision,” he added as quoted by ANI.

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US seeking concession in Indian agri sector

The Union Minister’s remarks assume significance as the US is seeking concessions in India's agriculture sector.

The Indian official team, headed by Commerce Secretary Rajesh Agrawal, was in Washington this week to hold trade talks with its US counterparts.

In February this year, leaders of India and the US directed officials to negotiate a proposed Bilateral Trade Agreement (BTA).

They have fixed a deadline to conclude the first tranche of the pact by the fall (October-November) of 2025. So far, five rounds of negotiations have been completed. Last month, Goyal led an official delegation to New York for trade talks.

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Trump’s tariffs and trade talks

The development comes at a time when trade relations between the US and India have become strained, with President Trump imposing a cumulative tariff of 50 per cent in India, out of which 25 per cent is for addressing trade imbalance and the remaining is a penalty for New Delhi’s continued import of Russian oil. Trump has claimed that Russia was using the revenue from its oil trade in India to fund its war in Ukraine.

India has described these duties as "unfair, unjustified and unreasonable".

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Thaw in Indo-US ties?

However, the recent phone conversations between Prime Minister Narendra Modi and US President Donald Trump have raised hopes of a positive outcome from the ongoing negotiations for the trade deal.

After a brief gap, Assistant US Trade Representative for South and Central Asia Brendan Lynch held talks with Indian officials in New Delhi on September 16. In that meeting, both sides agreed to push for an early and mutually beneficial conclusion of the agreement.

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US remains India's largest trading partner

The proposed pact aims to more than double the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.

The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports).

It accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade.

(With agency inputs)