India says no rush on trade deals; US pact ‘very near’

India will not rush into signing trade agreements or accept restrictions on its trading options, Minister of Commerce and Industry, Piyush Goyal, said on Friday (October 24), even as a senior government official indicated that a trade deal with the United States was close.

“India will not sign any trade deal in a hurry,” Goyal said at the Berlin Global Dialogue, responding to concerns raised by the European Union and the United States over India’s continued imports of Russian oil.

Alongside ongoing talks on a free trade agreement with the EU, India is negotiating a separate deal with the United States, which has imposed 50 per cent tariffs on Indian exports.

US President Donald Trump said this week that he spoke with Prime Minister Narendra Modi mainly about trade, and that Modi had assured him India would limit its oil purchases from Russia. Goyal said New Delhi would continue to take a measured approach.

An official familiar with the discussions said the two countries were working on the wording of the agreement. “We are very near as far as deal is concerned,” the official said, adding that both sides were “converging on most of the issues.”

India has resisted US requests for greater market access for American grains and dairy products, citing the need to protect small farmers. However, trade sources said India may allow limited imports of corn and soymeal.

After the United States sanctioned two of Russia’s top oil producers on Wednesday, Indian refiners said they would sharply reduce imports of Russian oil, which could help progress the trade deal.

According to the Commerce Ministry, India’s goods exports to the United States fell to $5.43 billion in August from $6.87 billion a year earlier, as tariffs affected shipments of textiles, shrimp, and gems and jewellery.

(With inputs from agencies)