Abhishek Vij
The sixth round of trade talks between India and the US concluded, but it failed to yield any significant results in India’s favor. Prior to this, India’s trade agreement with the US on LPG supplies was widely publicized. It was believed that perhaps the groundwork for trade relations between the US and India would return to normal. The US would cease its high-profile threats of a tariff war, and a deal would be reached somewhere near the tariff level we could easily impose—19 percent. India had assumed that since it had stopped purchasing crude oil from two major Russian companies and was now trading with smaller companies individually, America’s tough stance would likely soften. However, these “yes, no” trade negotiations remain stalled. However, in diplomatic terms, Union Commerce and Industry Minister Piyush Goyal has stated that the friendship between the two countries is enduring and the partnership is growing.
For example, the signing of the LPG agreement was believed to be an ongoing process, and that both countries would reach a healthy understanding while safeguarding their respective interests. There was considerable discussion about the proposed agreement between India and the United States, which would more than double bilateral trade from $191 billion to $500 billion by 2030. It was also stated that the US remains India’s largest trading partner in 2024-25, and that the US would not want to lose it, so the situation might change.
It was also believed that since goods imported from India have become more expensive in the US, the US, given the public’s anger, would likely finalize the trade agreement. But the matter remains the same. While the US sought to intervene in India’s agricultural and fisheries sectors for the benefit of fishermen, India, as it aimed to protect the country’s interests, and agriculture remains the backbone of the country’s economy, is refraining from compromising at the expense of farmers’ interests. Commerce Minister Piyush Goyal stated that six rounds of trade talks have been concluded, but India will not compromise on the interests of farmers and fishermen in any trade agreement. India seeks rules and equality in trade, as well as fair treatment. It is not that America’s prosperity should tilt the balance in its favor. Millions of farmers across the country cultivate landholdings of less than two acres. Their crops are small in quantity.
In such a situation, how can American wheat or corn be allowed to flood into India? First, China has spoiled the trade situation in the country by sending cheap goods, and now, if the United States attempts to dominate its fellow trading partner, India, then India will not allow American agricultural products and fisheries units to disrupt India’s trade under any circumstances. India is already trying to break free from American dependence. To diversify international trade, it has also begun entering into free trade agreements with third-world countries and the European Union. Now, the issue, which was complicated by India’s large-scale export of agricultural products, India wants to enter into free trade agreements with countries around the world, so that the value of the American dollar can be suppressed.
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