'We don't intend to rush': India rejects quick US trade deal, pushes for better terms

Representative image

India has refused to rush into a quick trade agreement with the United States, choosing instead to hold out for more favourable terms despite mounting pressure from Washington, according to a Reuters report.

However, Union minister Piyush Goyal dismissed the report, calling it "completely false, baseless and misleading."According to the report, India's stronger economic outlook, expanding trade partnerships and recent political gains have strengthened its bargaining position in the negotiations.The report said months of talks failed to produce an interim trade pact during US Trade Representative Jamieson Greer's visit to New Delhi last month, even though both sides had expected a limited agreement to be within reach.The negotiations reportedly stalled because Washington did not meet India's key demands, including preferential tariff treatment over competitors such as China and assurances that no additional US tariffs would be imposed after the agreement."Our position is clear — we don't intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," an Indian government official told Reuters.

The United States has been seeking quicker trade concessions from India as President Donald Trump prepares to roll out another round of tariffs later this month. India's refusal to fast-track an agreement could leave its exports exposed to higher US duties and prolong uncertainty for businesses.A day after Greer's visit, Goyal had signalled India's firm position, saying any agreement with the US would move forward only if it secured clear advantages for the country.At present, most Indian exports to the US attract a 10% tariff. The Trump administration is expected to announce steeper duties later this month under investigations into alleged excess industrial capacity. India has rejected the US allegations.Washington has also proposed additional tariffs of up to 12.5% on imports from several countries, including India, alleging they failed to prevent goods produced through forced labour from entering global supply chains.A US source familiar with the negotiations told Reuters that Washington believes India must make reciprocal concessions before receiving the preferential trade treatment it has sought.Another US official, speaking on condition of anonymity, said negotiations were continuing and Washington still expected an agreement, although no timeline had been set. The official added that India had at times been "slow, bureaucratic and difficult" during the talks, suggesting that a quick breakthrough was unlikely.Responding to the impasse, White House spokesperson Kush Desai said, "The Trump administration continues to productively engage with Indian officials to finalise a historic trade deal that puts Americans and America First."Trade experts cited by Reuters said India's improving economic indicators have strengthened its negotiating hand. India's goods exports rose around 15% year-on-year during April-June despite disruptions caused by the Iran conflict, supported by higher petroleum shipments.Exports to Gulf countries recovered to pre-war levels, rising to $5.3 billion in May from $2.62 billion in March as exporters shifted to alternative shipping routes. Exports to the United States also increased to $17.29 billion during April and May.India is also expanding access to other major markets. Its free trade agreement with the United Kingdom is expected to come into force this month, while negotiations on an India-European Union trade pact are progressing, with both sides aiming to conclude the deal early next year.Goldman Sachs economist Santanu Sengupta said easing tensions between the US and Iran had improved India's economic outlook by reducing pressure from oil prices. The investment bank has raised India's 2026 growth forecast to 6.8% while lowering its inflation and current account deficit estimates, giving New Delhi greater room to negotiate without urgency.A weaker rupee has also improved the competitiveness of Indian exporters.

Another Indian official told Reuters that New Delhi was also factoring in the possibility that some proposed US trade measures could face legal or political challenges.Rejecting the Reuters report, Goyal said on X: "The news is completely false, baseless and misleading.""I had fantastic meetings with USTR Jamieson Greer, @USTradeRep, when he visited Delhi in June. 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," he added.