New Delhi, Oct 6: External Affairs Minister S. Jaishankar stated that any trade agreement between India and the United States must respect New Delhi’s “red lines.” The minister made the remarks on Sunday during a discussion on “Shaping Foreign Policy in Turbulent Times,” where he addressed the ongoing strain in bilateral ties, much of which he noted is linked to trade disagreements.
The specific “red lines” India has conveyed to US trade negotiators include protecting its rural economy by not allowing US companies access to the domestic agriculture and dairy sectors.
Jaishankar mentioned that a significant part of the current difficulties with the US stems from the fact that “we have not arrived at a landing ground for our trade discussions, and the inability so far to reach there has led to a certain tariff being levied on India.” He stressed the necessity of reaching a trade understanding, not just because the US is the world’s largest market, but because many other nations have already reached such understandings.
Referring to the negotiations, the minister said, “We have to see that our red lines are respected… In any agreement, there are things you can negotiate and there are things you can’t.” He added that India is “pretty clear about that. We have to find that landing ground and that’s been the conversation, which has been going on since March.”
The minister cited tariffs imposed by US President Donald Trump as a core issue. Trump previously imposed a reciprocal tariff on India. In addition, Jaishankar mentioned a second, “punitive levy” that India has “publicly termed unfair.” This second tariff, a twenty-five percent levy, was imposed by the US administration due to India’s decision to buy crude oil from Russia.
Jaishankar noted that countries with a “far more antagonistic relationship” with Moscow were still purchasing Russian energy but had not faced similar punitive levies from the US.
Talks regarding a trade deal recently resumed following an improvement in the relationship after a phone conversation between Prime Minister Narendra Modi and President Trump.
The minister’s remarks came while responding to questions from the moderator, former Revenue Secretary N. K. Singh, and members of the audience. He asserted that differences between India and the US should be viewed in proportion, as certain aspects of the bilateral relationship are continuing “as usual.”
During his address, Jaishankar also focused on the strategic consequences of rapid global changes, including the leveraging of production, supply chains, trade, data, and connectivity, and outlined India’s strategy for coping with these shifts by developing its own manufacturing network.
