India and the United States have failed to reach a consensus on an interim trade agreement, with New Delhi insisting on more favourable terms before signing any deal. Indian officials said negotiations remain active but stressed that national interests will not be compromised. The impasse comes as India gains confidence from stronger economic performance and expanding global trade partnerships.
India’s Commerce Minister Piyush Goyal said both countries remain committed to negotiating a balanced and commercially meaningful agreement. However, officials said recent talks failed because Washington did not guarantee tariff advantages for Indian exports or rule out future US trade levies. New Delhi also refused to make concessions on sensitive sectors, particularly agriculture.
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The Trump administration had hoped to secure a quick agreement before introducing new tariffs expected later this month. While most Indian exports currently face a 10% US tariff, Washington is considering additional duties following investigations into industrial overcapacity and forced labour concerns. US officials acknowledged negotiations were continuing but described the process as slow and complex.
Meanwhile, India’s stronger economic position has improved its negotiating leverage. Goods exports rose about 15% during April to June, while trade with Gulf countries recovered after recent regional tensions. India has also expanded access to overseas markets through a free trade agreement with the United Kingdom and ongoing negotiations with the European Union.
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Analysts said easing oil prices, stronger export performance, and recent domestic political gains have allowed New Delhi to resist pressure for a quick agreement. Economists believe India’s improved growth outlook gives policymakers greater flexibility during negotiations. Both governments have reaffirmed their commitment to reaching a mutually beneficial trade agreement, although no timeline has been announced.