India is resisting pressure to conclude a swift trade agreement with the United States, choosing instead to push for more favourable terms as improving economic conditions and expanding global trade partnerships strengthen New Delhi’s negotiating position. According to Reuters, talks between the two countries failed to produce an interim agreement during the recent visit of U.S. Trade Representative Jamieson Greer, after Washington declined to meet key Indian demands, including tariff advantages over competing exporters such as China and guarantees against future U.S. tariff increases.
Indian officials have made it clear that the government will not compromise on politically sensitive sectors, particularly agriculture, despite the risk of higher U.S. tariffs on Indian exports. Commerce Minister Piyush Goyal has maintained that any agreement must deliver clear commercial benefits for India before it can be implemented. Analysts say Prime Minister Narendra Modi’s government has gained greater confidence following new trade agreements with partners including the United Kingdom, improved economic indicators, and stronger geopolitical influence, allowing New Delhi to negotiate from a position of strength.
India’s bargaining power has also been supported by an improving domestic economic outlook. Goldman Sachs recently raised its 2026 growth forecast for India to 6.8%, while lower inflation expectations and a reduced current account deficit have eased immediate economic pressures. At the same time, Indian policymakers believe some proposed U.S. tariff measures could face legal challenges, reducing the urgency to accept a deal on less favourable terms. Industry experts note that New Delhi is increasingly prioritising long-term strategic interests over short-term tariff relief.
The prolonged negotiations highlight the evolving balance in one of the world’s most important trade relationships. While Washington is seeking quicker market access and trade concessions, India is signalling that it is prepared to delay or even forgo an agreement unless its core interests are protected. Analysts say the outcome of the talks will have significant implications for bilateral trade, global supply chains, and the broader economic partnership between two of the world’s largest democracies.
