Nirmala Sitharaman: India “Would Love A Big, Good, Beautiful” Trade Pact With US

With the clock ticking toward a critical July 9 deadline, India’s Finance Minister Nirmala Sitharaman has voiced strong optimism and strategic clarity regarding a potential India-US trade pact, framing it as a bold and mutually beneficial opportunity, so long as national interests remain protected.

Speaking in a detailed interview with Financial Express, Sitharaman remarked, “Yes, we would love to have an agreement, a big, good, beautiful one; why not?” Her phrasing—a creative echo of former US President Donald Trump’s rhetorical flair—signals India’s readiness for deeper trade engagement with the United States, albeit with clear red lines.

This development arrives just as Washington considers imposing steep retaliatory tariffs—up to 26%—on key Indian exports unless a limited bilateral trade agreement is finalized. India is working urgently to complete a framework that balances the interests of both nations while defending vulnerable sectors like agriculture and dairy.

Nirmala Sitharaman: Guarding the Red Lines

Finance Minister Sitharaman underscored that India’s negotiating approach is defined by a firm resolve to protect its domestic ecosystem, especially farmers and livestock breeders. “Agriculture and dairy have been among the very big red lines, where a high degree of caution has been exercised,” she emphasized.

The assurance comes in response to Trump’s claim last week that a forthcoming interim trade deal would “open up” India for American business, particularly in sectors like agriculture and retail. Sitharaman acknowledged the strategic value of such a deal, but insisted it must be tailored around India’s economic goals and social needs.

“At the junction we are in, and given our growth goals and ambition to reach Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us,” she explained. “But that doesn’t mean compromising what matters most to us.”

Addressing the “Tariff King” Label

Reacting to Trump’s past characterization of India as a “tariff king,” Sitharaman firmly rejected the accusation. “That label is unjustified,” she said. “Our applied tariffs are modest, and we have only eight duties, including zero tariffs. The effective tariff rates are far below WTO thresholds.”

Customs duties in India currently amount to just around 4% of the value of imported goods, lower than many global averages. According to Sitharaman, recent budgets have further slashed these rates, reflecting India’s commitment to rationalizing trade barriers in line with global norms.

Nirmala Sitharaman: What’s on the Negotiation Table

India is seeking relief from US tariffs on steel, aluminium, and specific agricultural products. Simultaneously, New Delhi is pushing for visa liberalization and enhanced access for Indian services—an area of growing economic strength. On the other side, the US is keen on expanding its agricultural footprint in India, strengthening tech sector entry, and securing commitments on intellectual property and cross-border data flows.

Despite differing priorities, both nations appear motivated to avoid an impasse. With Trump reviving his assertive trade agenda ahead of the US elections, an India-US trade pact could serve as a high-impact diplomatic win—if it arrives in time.

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