The Indian government has characterized recent trade talks with the United States as positive, expressing an intention to intensify efforts to finalize a bilateral trade agreement promptly. These discussions occur following the US imposition of an additional 25% tariff on India, effective August 27, a measure linked to India’s purchases of Russian oil. New Delhi has indicated it considers this tariff an unwarranted introduction of non-trade issues into the negotiations.
According to the Global Trade Research Initiative (GTRI), a New Delhi-based think tank, substantial progress on the trade deal is contingent upon Washington rolling back this oil-linked duty. GTRI founder Ajay Srivastava stated that without such a reversal, a breakthrough is neither politically nor economically viable. Srivastava further noted India’s firm stance on safeguarding its agricultural and dairy sectors, which it views as critical livelihood issues for approximately 700 million farmers, suggesting these areas would not be compromised for a trade deal. He also identified potential US demands in negotiations, including easing patent rules, permitting unfettered data flows, opening e-commerce platforms, and granting US firms procurement access, describing these as sensitive areas for India. Srivastava predicted a prolonged negotiation period, cautioning that even if India ceases purchasing Russian oil, tariff removal is not guaranteed, and negotiations will remain slow unless Washington demonstrates genuine flexibility.
The United States has reportedly obtained commitments from G7 countries to increase sanctions pressure on buyers of Russian oil, with China and India identified as the primary purchasers. India, however, has consistently maintained its intent to continue acquiring Russian oil, with Finance Minister Nirmala Sitharaman earlier stating that India’s oil procurement decisions are driven by economic and commercial considerations.
Source: indianexpress.com