Economy

India's Trade Deal With US: Jaishankar Insists Red Lines Be Respected

Published On Mon, 06 Oct 2025
Arjun Shekhawat
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India’s External Affairs Minister S. Jaishankar recently highlighted that India’s “red lines” must be respected in any trade negotiations with the United States. Speaking at a forum in New Delhi, Jaishankar acknowledged ongoing challenges in the bilateral relationship but emphasized that while trade talks are essential, there are non-negotiable issues India will firmly protect. These untouchable areas primarily center on safeguarding the interests of Indian farmers, small industries, and fishermen from policies that could harm their livelihoods.

Jaishankar pointed out that despite the complexities, India and the US need to find a “landing ground” in their trade discussions—a mutually acceptable agreement. Since March, talks have been ongoing to bridge differences, but the failure to settle terms has led to the US imposing tariffs on Indian goods, including a 50% tariff hike, partly linked to India's import of Russian oil. He described the additional tariff as “very unfair,” noting that other countries with even more strained ties to Russia have not been penalized similarly by the US.

India’s resistance to opening sectors like agriculture and dairy to American imports comes from a commitment to protect its domestic economy and the millions who depend on these sectors. Prime Minister Narendra Modi has reiterated a pledge to defend Indian farmers from any market disruptions caused by foreign imports. Jaishankar’s remarks underline that certain trade vulnerabilities are off limits for negotiation because they represent New Delhi’s core economic and social priorities.

Despite these tensions, bilateral ties between India and the US continue in other domains such as defense and strategic cooperation. The two countries recently revived trade talks following a phone discussion between Narendra Modi and US President Donald Trump, reflecting an effort to deescalate trade tensions and work toward a workable deal. However, Jaishankar’s clear message is that any agreement must respect India’s red lines for it to be sustainable and successful.

This stance exemplifies India’s broader approach to trade diplomacy—balancing the benefits of access to the world’s largest market with the imperative to shield vital domestic sectors from external disruptions. The talks symbolize the challenge India faces in its global economic engagement: securing growth opportunities while safeguarding national interests and socio-economic stability.

Disclaimer: This image is taken from HIndustan Times.