Indiaus Trade Talks Making 'Fantastic Progress,' Says Commerce Minister Piyush Goyal

(MENAFN- KNN India) New Delhi, Jul 25 (Jul) Indian Commerce Minister Piyush Goyal expressed optimism about ongoing trade negotiations with the United States, describing the talks as making 'fantastic progress.'

The minister's comments came during a visit to London on Thursday, where he had signed a free trade agreement with the United Kingdom.

The positive assessment comes as both nations work toward meeting an August 1 deadline set by US President Donald Trump.

Trump has indicated that countries failing to reach trade agreements by this date could face substantial tariffs on their exports to the United States.

The current negotiations follow a series of missed deadlines between Washington and New Delhi. Trump initially announced 26 per cent tariffs on Indian goods in April as part of broader trade policy measures.

These tariffs were subsequently delayed twice, first until July 9 and then extended to the August 1 deadline currently in place.

Multiple Indian delegations have traveled to the United States in recent months to advance the negotiations. Last week, Trump similarly expressed confidence about the talks, stating that the two countries were 'very close' to finalising an interim trade agreement.

Both nations have set a goal of reaching a comprehensive bilateral deal by the end of this year.

Speaking to Reuters, Goyal indicated hope for concluding what he termed 'a very consequential partnership.' When questioned about specific negotiating challenges, particularly regarding agricultural and dairy tariffs, the minister declined to provide details, noting that 'negotiations happen in the negotiation room.'

He suggested that India might pursue a comprehensive agreement if smaller sectoral deals could be achieved first.

Agricultural market access remains a significant point of contention in the discussions. The United States has long sought greater access to India's farming sector, viewing it as a substantial untapped market opportunity.

India has consistently resisted such proposals, citing concerns about food security, farmer livelihoods, and the welfare of millions of small-scale agricultural producers.

The trade relationship between the two countries represents substantial economic stakes.

Until recently, the United States held the position as India's largest trading partner, with bilateral trade reaching USD 190 billion annually. Trump and Indian Prime Minister Narendra Modi have established an ambitious target of increasing this figure to USD 500 billion.

India has already implemented tariff reductions on various American products, including bourbon whiskey and motorcycles, as part of earlier agreements.

However, the United States continues to maintain a USD 45 billion trade deficit with India, a figure that the Trump administration has prioritised reducing through the current negotiations.

(KNN Bureau)

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