India will emerge stronger amid US tariffs, says Goyal as trade talks go on

Commerce Minister Piyush Goyal said India is in negotiations with the US, EU and others for trade agreements, aiming to exceed last year's $825 bn exports despite tariff challenges

Union Commerce Minister Piyush Goyal on Friday said India is in negotiations with several countries, including the United States, for trade agreements, adding that the European Union and other nations are also eager to strengthen trade ties.

 

He expressed confidence that India’s goods and services exports in 2025-26 would surpass last year’s $825 billion.

 

"We are in dialogue with many countries – Oman, the European Union, the US, Chile, Peru, New Zealand. Many others want to start engaging with India. So today the world recognises the strengths of India, recognises our demographic advantages… 1.4 billion people bring aggregate demand, a huge domestic market… Why else do you think everybody is vying to do trade or have better market access in India," Goyal said at the BT India @100 event. 

 

Talks with the US face roadblocks

India and the US have held five rounds of talks on a bilateral trade deal since March. The next round, scheduled for August 25 in New Delhi, is uncertain after US President Donald Trump ruled out further talks until the tariff dispute is resolved.

 

Earlier this month, the US imposed an additional 25 per cent tariff on Indian goods – on top of the 25 per cent reciprocal tariffs imposed in July – as a penalty for India’s purchase of Russian crude oil. While the reciprocal tariffs are already in place, the additional duties will take effect on August 27.

 

Agricultural products, including genetically modified soybean, and dairy remain contentious issues. Both are politically sensitive in India, where large sections of the population depend on them for their livelihoods.

 

Following the imposition of 50 per cent tariffs, Prime Minister Narendra Modi said he would never compromise the welfare of Indian farmers, even at a heavy cost. 

 

On Friday, Goyal said India sees opportunities even in difficult situations. "The nation’s morale is high… There is a lot of strength in the Indian economy… India will emerge as the winner in any kind of crisis," he said, citing the resilience shown during the Covid pandemic.

Diversifying trade partners

Goyal noted that India has recently signed agreements with the UAE, Mauritius, Australia, the European Free Trade Association, and the UK.

 

On the global trade environment, he said: "I do not see any de-globalisation. I see countries restructuring their trade routes and their trade partners and I am quite confident this year, India will do more exports than last year."

 

He described current shifts as part of a natural cycle: "Over every few years, new countries come up, some countries go down and this is part of history of nations." 

Economic fundamentals strong

Goyal said India’s economy is growing at a fast pace, attracting global attention. "The whole world recognises us as the fastest-growing large economy. We are contributing 16 per cent to global growth, our inflation is amongst the lowest compared to other emerging markets… our macroeconomic fundamentals are the best," he said.

 

"India today is stronger, much more confident, much more respected," he added, citing the country’s 6.5 per cent growth rate and the aim to sign trade agreements with nations where complementarities exist.

On India-UK trade agreement

Addressing reported concerns about the India-UK trade deal, particularly on government procurement and lower duties on Scotch whisky, Goyal said there were no problems and that Indian businesses were also gaining access to the UK market.

 

He criticised Congress leader Rahul Gandhi for agreeing with President Trump’s description of India as a "dead economy", calling it "sad" and "unfortunate". He accused the Opposition of disrupting Parliament and creating "fake narratives".