Why India hasn't rushed into a trade deal

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Even as the U.S. announced deals with other countries, such as with Japan that addressed sticking points on greater market access for American autos and agricultural products, India did not rush into an agreement.

The country has resisted larger market access for American agricultural products to protect its local farmers, who form a sizable voting bloc. In its trade deal with the U.K., signed last week, India managed to safeguard its most sensitive agricultural sectors from tariff concessions.

India is not “backing off” because their exports to the U.S. constitute a small part of their economy and it cannot afford to open its agricultural sector to U.S. companies, said Carlos Casanova, senior economist at UBP. America’s goods imports from India totaled $87.4 billion in 2024, according to U.S. government data.

India’s Commerce and Industry Minister Piyush Goyal in an interview with CNBC last week signaled that the relaxing entry barriers for the sector could be a problem.

“We are always very sensitive to the interests of our farmers, the interests of our [Micro, Small, and Medium Enterprises], and will ensure that our areas of concern are well protected,” Goyal said.

He reportedly said Sunday that India does not negotiate its trade agreements based on deadlines, and while a deal was preferable, New Delhi would put its national interest first. “I am fully confident that by the October-November 2025 timeline, we will secure a good agreement,” Goyal said, according to The Economic Times.

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