No compromise on red lines, sensitivities in India-US trade pact, sources say

Negotiations between India and the US for the proposed trade pact will depend on how each side addresses the sensitivities and the red lines, sources told PTI

As far as India is concerned, they said, it has already made it clear that there will be no compromise on issues concerning farmers, fishermen, and small units.

"Ultimately there are some red lines that we cannot overlook, the deal is dependent upon how each party addresses those red lines. For us it has been clearly spelt out," the source said in a conversation with PTI.


Reportedly, India and the US are negotiating a bilateral trade pact (BTA) since March 2025. So far, five rounds of talks have been completed between ambassadors and ministers from both countries. For the next round of talks, the US team has postponed its visit to India, which was earlier scheduled from August 25.

Prime Minister Narendra Modi said in a recent address that he will stand like a wall to protect the interests of farmers and fishermen, and India will never compromise on their interests.

US Treasury Secretary Scott Bessent expressed some confidence that both countries would eventually find common ground despite escalating tariff tensions.

“I think at the end of the day, we will come together. President (Donald) Trump or Prime Minister (Narendra) Modi have very good relationships at that level. And it’s not just over the Russian oil,” Bessent said in an interview with Fox Business.

Also read: Tariff not a cause for panic, impact unlikely to be as severe as feared: Govt sources

In the proposed trade agreement, the US is seeking reduced tariffs on products like apples, corn, soybeans, almonds and ethanol, as well as increased access for US dairy products in the Indian market. New Delhi is, however, strongly opposing these demands, as they affect the livelihood of small and marginal farmers of India.

It should be noted that India has never given any duty concessions to any of its trading partners, including Australia and Switzerland, with whom it has signed trade agreements in the past.

The proposed trade pact between India and the US is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.

The US and India have announced plans to conclude the first phase of BTA by fall (September-October) of 2025.

In 2024-25, the bilateral trade between India and the US stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).

The US was the largest trading partner of India in the April-July period (USD 12.56 billion bilateral trade) of 2025-26.

(With inputs from PTI)