US Trade Deal Near Closure, Says Commerce Minister Piyush Goyal: Key Takeaways from HT Interview
India’s Commerce and Industry Minister Piyush Goyal has said that the long-pending trade agreement between India and the United States is “moving towards closure”, signalling steady progress in bilateral negotiations.
Speaking in an interview with Hindustan Times days after the signing of the India–EU Free Trade Agreement, Goyal also explained how the Modi government approaches global trade talks and why India is now negotiating from a position of strength.
Here are the key highlights from the interview:
India–US Trade Talks: ‘Moving Towards Closure’
Goyal described the proposed India–US trade deal as positive and beneficial, while making it clear that New Delhi does not negotiate under pressure of deadlines.
“We are actively engaged. We never do any deal with a deadline in mind. When both sides are satisfied, the date will be announced,” he said.
He added that most of the difficult issues have already been addressed.
“I don’t think there are any sticky issues left. We can now look at moving towards closure.”
India and the US began negotiations early last year. Talks slowed after US President Donald Trump imposed steep tariffs on Indian goods in August, citing penalties linked to India’s purchase of Russian oil. Since then, negotiations have continued quietly, with recent signs of renewed engagement.
Possible Trade Deal with Canada: ‘They Are Very Keen’
Goyal also indicated growing interest from Canada in pursuing a trade agreement with India, especially after Canadian Prime Minister Mark Carney’s recent visit.
“They are very keen to speed it up. We are working on the terms of reference, but we have to start from scratch,” he said.
On whether recent FTAs with the UK and the EU could serve as templates, Goyal said each agreement depends on a country’s unique economic conditions and interests.
India–EU FTA: What Comes Next
Discussing the India–EU trade deal, Goyal rejected the view that the European Union became more receptive only after disruptions in global trade due to US tariffs.
“They have been consistent since 2022. They made up their mind that they have to do a deal with India,” he said.
He noted that negotiations slowed temporarily in 2024 due to elections in both India and Europe, but commitment on both sides remained strong.
Goyal expressed confidence that the agreement will be ratified by the European Union Parliament in 2026, citing strong backing from key EU member states.
How Modi-Led India Negotiates Global Deals
Goyal highlighted a major shift in how India is perceived globally under Prime Minister Narendra Modi.
“One of the biggest differences between the past and today is that India is a respected country. People see political stability, macroeconomic stability, and decisive leadership,” he said.
He explained that India now negotiates based on future potential rather than current size.
“We are not negotiating today’s $4 trillion economy. We are negotiating India’s $30 trillion economy of 2047. That is what attracts partners.”
According to Goyal, this approach allows India to negotiate either as an equal or from a position of greater strength, leading to what he called “super deals.”
Manufacturing Push: ‘Zero Duty from Day One’
The commerce minister said the India–EU FTA would significantly boost manufacturing and exports.
“In most sectors, we got zero duty from day one. Out of $35 billion in labour-intensive exports, $33.5 billion became zero duty immediately,” he said.
He pointed to textiles as a major opportunity, noting that while India currently exports about $7 billion worth of textiles to the EU, the market has the potential to absorb exports worth $40–50 billion.
“Our quality will improve as demand increases. If we can export $7 billion, we can export $70 billion,” Goyal said.
Focus on Innovation and Global Partnerships
Goyal reaffirmed the government’s focus on manufacturing, services, innovation, and logistics.
“We will continue to push innovation, R&D, startups across technology, agriculture, and biotech, while expanding international engagement with aligned and developed partners,” he said.
Bottom Line
With the India–US trade deal nearing completion and major FTAs already signed with the UK and EU, the Modi government is positioning India as a key global economic partner—negotiating not from the past, but from the promise of future growth.
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