India Open To US Trade Deal, Provided Core Interests Are Safeguarded: FM Sitharaman

(MENAFN- KNN India) New Delhi, Jun 30 (KNN) Finance Minister Nirmala Sitharaman has expressed India's openness to a comprehensive trade agreement with the United States, provided the country's core interests, particularly in agriculture and domestic procurement, are safeguarded.

In an exclusive interview with The Financial Express, Sitharaman stated that India would welcome a“big, good, beautiful” trade deal with the US, reiterating the strategic importance of the US as one of India's top trade partners.

Referring to US President Donald Trump's phrase“big, beautiful bill,” the Finance Minister said she would be pleased to see a similarly ambitious agreement between the two countries.

However, she made it clear that there are well-defined boundaries India is not willing to cross in ongoing negotiations.

“Agriculture and dairy are sensitive sectors for us. There's no way we could do anything that would weaken our agriculture or farmers' positions,” Sitharaman said, underscoring India's firm opposition to US demands for access to its market for genetically modified (GM) crops.

She stressed the importance of protecting micro, small, and medium enterprises (MSMEs) and startups, which depend on supportive public procurement policies.“We can't open it up for someone without these concerns addressed,” she added.

Media reports suggest that this remains a key sticking point in talks, which have been extended beyond the scheduled June 27 deadline, with Indian negotiators prolonging their stay in the US in a bid to resolve outstanding differences.

Sitharaman noted that trade agreements with major economies are crucial to India's ambition of becoming a developed nation by 2047, and therefore, reaching an agreement with the US at the earliest would be beneficial.

Still, she maintained that every sectoral concern raised by Indian industry had been taken into account before the discussions began.

Commenting on possible US duty reductions under the prospective deal, the Minister acknowledged that any such move would require congressional approval-a process she described as lengthy and outside India's purview.“They might pitch for it, but it will happen only after the agreement is finalised,” she added.

On the issue of non-tariff barriers, Sitharaman signalled India's cautious approach.

She stated that trade negotiations should not be led by non-traditional issues such as environment, sustainability, carbon taxes, gender, and labour rights.

While acknowledging their increasing inclusion in global trade frameworks, she asserted that India, as an emerging market, must evaluate each area carefully.

“We just can't walk into it. Our market needs are unique,” she said, citing government procurement as an example.

As negotiations continue, both sides are reportedly striving to find common ground, but significant hurdles remain.

(KNN Bureau)

MENAFN30062025000155011030ID1109742889