India rejects fast-track US trade deal, seeks better terms

India has declined to fast-track a trade agreement with the United States, choosing instead to push for more favourable terms as Prime Minister Narendra Modi gains confidence from expanding trade ties, reduced economic pressures and stronger political standing at home, according to officials and analysts.

Despite months of negotiations, the two countries were unable to secure an interim trade deal during US Trade Representative Jamieson Greer’s visit to New Delhi last month, even though both sides had signalled that a limited agreement was close to being completed, Reuters reports.

Talks stalled because the United States did not provide commitments on India’s main priorities, including preferential tariff treatment compared with rivals such as China and guarantees against additional US duties after any agreement is signed, an Indian government official familiar with the discussions said.

"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," the official noted.

A US official, who requested anonymity, said Washington remains actively engaged with New Delhi and still expects a deal to be reached, although no timeframe was given.

The official added that India had at times moved slowly and remained difficult to negotiate with due to bureaucratic hurdles, indicating that a swift breakthrough was unlikely.

Responding to questions about the deadlock, White House spokesman 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."

As with many other countries, most Indian exports currently face a baseline US tariff of 10%. However, the Trump administration is expected to roll out higher duties later this month following investigations into alleged excess industrial capacity. India has rejected US claims that it maintains surplus production capacity.

Washington has also proposed additional tariffs of as much as 12.5% on goods from dozens of countries, including India, citing concerns that those nations had not done enough to prevent trade in products allegedly linked to forced labour.

By Jeyhun Aghazada