India is taking a cautious and measured approach toward trade agreements, made clear by Commerce and Industry Minister Piyush Goyal during his recent remarks at the Berlin Global Dialogue in Germany. Speaking at a forum attended by leaders and German business representatives, Goyal emphasized that India does not rush into trade deals nor succumb to external pressures or arbitrary deadlines. Instead, India prioritizes long-term strategic interests and national sovereignty in its trade negotiations, a stance that underpins its ongoing discussions with major partners such as the European Union (EU) and the United States.
Goyal pointed out that India remains deeply engaged in active dialogues with the EU and the US to forge mutually beneficial trade agreements. However, he stressed that such deals must be approached with patience and a comprehensive, long-range perspective rather than a narrow focus on immediate tariff reductions or market access. “We do not do deals with deadlines or with a gun to our head,” he said, signaling India’s intent to maintain control over the pace and substance of trade negotiations without yielding to external pressures.
The minister also highlighted India’s efforts to diversify its trade portfolio to address challenges posed by high tariffs in certain markets. This reflects a broader strategy to explore new trading partners and markets beyond traditional ones, aiming to mitigate risks and expand economic opportunities. Goyal dismissed the notion that India selects its trading partners based on anything other than national interest. He firmly rejected any suggestion that India should limit its relationships with countries like the EU or Kenya due to external pressures, underscoring the country’s sovereign right to decide its trade alliances independently.
These remarks carry particular significance against the backdrop of U.S. sanctions and tariff policies. The United States recently imposed sanctions on two of Russia’s largest crude oil producers, Rosneft and Lukoil, barring American entities from doing business with them. India’s continued purchase of Russian crude oil has drawn criticism and punitive tariffs from the U.S., which slapped a 25 percent tariff on Indian goods as a penalty—a move layered on top of an existing 25 percent reciprocal tariff on U.S. imports into India. As a result, Indian exports face an effective 50 percent additional duty when entering the American market. New Delhi has described these tariffs as unfair and unjustified, arguing that such measures undermine the spirit of free trade and bilateral cooperation.
Goyal questioned the fairness of the U.S. approach, especially given that other countries like Germany and the UK have reportedly secured exemptions from U.S. sanctions on oil imports. “If Germany is asking for an exemption and the UK has sorted or probably got an exemption for procuring oil from the U.S., then why single out India?” he asked, highlighting perceived inconsistencies in the application of U.S. sanctions and underscoring India’s position as a responsible global trading partner.
The minister reiterated that trade agreements are not merely about tariffs or market access but encompass broader dimensions of trust, mutual respect, and long-term relationships. “Trade deals in a longer context are far more than just tariffs,” Goyal explained, urging stakeholders to look beyond immediate concerns and foster durable economic partnerships.
India and the U.S. have been in ongoing negotiations for a bilateral trade agreement since March 2024. To date, five rounds of talks have been completed, with both sides expressing optimism about reaching a fair and equitable pact. The Commerce Ministry in India reported that a delegation led by Commerce Secretary Rajesh Agrawal recently concluded a three-day round of discussions in Washington, pointing to steady progress in the talks.
The impetus for these negotiations was provided in February 2024, when leaders from both countries directed their officials to pursue a Bilateral Trade Agreement (BTA). They set a target to conclude the first phase of the agreement by the fall of 2025. In recent months, despite a temporary pause triggered by the imposition of high tariffs by the U.S., dialogue resumed with renewed vigor. Notably, Assistant U.S. Trade Representative Brendan Lynch visited New Delhi in mid-September to engage with Indian officials and reaffirm both sides’ commitment to an early and mutually beneficial outcome.
The proposed BTA aims to significantly boost bilateral trade volume, targeting an increase from the current approximate figure of USD 191 billion to USD 500 billion by 2030—an ambitious goal that underscores the strategic importance both countries place on their economic relationship. The United States has been India’s largest trading partner for four consecutive years, with bilateral trade valued at USD 131.84 billion in 2024-25