In a candid declaration underscoring India’s firm stance in trade negotiations with the US, External Affairs Minister S. Jaishankar on Sunday asserted that any eventual trade understanding must be one where New Delhi’s “red lines” are respected. The Minister’s remarks, delivered at the Kautilya Economic Conclave in New Delhi, highlight the ongoing deadlock with the Donald Trump administration, which continues to push for wider access to the Indian market and an end to Russian energy imports.
“Whatever happens, India and the US will have to have a trade understanding,” Jaishankar said, acknowledging the importance of the world’s largest market. “But it has to be an understanding where our bottom lines, our red lines are respected.”
The Unspoken “Red Lines”
While Jaishankar did not explicitly detail the “red lines,” they are widely understood to involve protecting two highly sensitive domestic sectors: Indian agriculture and dairy markets. This position aligns with Prime Minister Narendra Modi’s public commitment to “protect our farmers at any cost.” Opening these sectors is a key demand of the US, which seeks to sell its products, such as genetically modified corn and dairy, to India’s vast consumer base.
The External Affairs Minister pointed out that the current friction stems from the inability of both sides to “arrive at a landing ground” in the trade discussions that have been ongoing since March. “In any agreement, there are things you can negotiate and there are things you can’t. I think we are pretty clear about that,” he added.
Slamming “Unfair” Tariffs
Jaishankar also took aim at the punitive tariffs imposed by the US, which he said have resulted from the failure to reach a trade agreement. India currently faces two layers of duties:
- A 25% reciprocal tariff on Indian shipments.
- An additional 25% “penalty” tariff levied specifically for India’s energy sourcing from Russia.
Jaishankar publicly called the second tariff “very unfair,” pointing out the perceived double standard. He highlighted that other nations with a “far more antagonistic relationship with Russia” are also buying Russian energy but have not been subjected to similar punitive levies from the US.
US Pressure and India’s Response
The comments come one week after US Commerce Secretary Howard Lutnick issued a provocative statement, insisting that if India wants to sell to the American consumer, it “must play ball with the President of the United States.” Mr. Lutnick has repeatedly put India on a list of countries the US needs to “fix,” urging New Delhi to open its markets and “stop taking actions that harm America.”
Despite the friction, Jaishankar noted that some aspects of the bilateral relationship are continuing as “business as usual.” The India-US trade talks recently resumed following a diplomatic thaw sparked by a phone conversation between Prime Minister Modi and President Trump. However, with both sides holding firm on core issues like market access and energy independence, clarity remains elusive on whether a first-phase deal can be reached by the initially envisaged timeline of the fall.