India seeks tariff cuts ahead of trade deal with US, report says; The center called the claims “baseless”

India has refused to rush into a quick trade deal with the United States, preferring instead to push for better terms despite growing pressure from Washington, according to a Reuters report. However, Union Minister Piyush Goyal rejected the report, calling it “totally false, baseless and misleading”.India’s stronger economic outlook, expanding trade partnerships and recent political achievements have strengthened its bargaining position in the talks, according to the report.The report said months of negotiations failed to produce an interim trade deal during U.S. Trade Representative Jamison Greer’s visit to New Delhi last month, although both sides expected a limited agreement to be within reach.The talks have reportedly stalled because Washington has not met key Indian demands, including preferential tariff treatment over rivals such as China and assurances that no additional US tariffs will be imposed after the agreement.“Our position is clear – we do not intend to rush into an agreement that is not on favorable terms, or compromise on red lines such as agricultural land concessions,” an Indian government official told Reuters.The United States is seeking faster trade concessions from India as President Donald Trump prepares to impose another round of tariffs later this month. India’s refusal to speed up the agreement could expose its exports to higher U.S. tariffs and prolong business uncertainty.A day after Greer’s visit, Goyal signaled India’s strong position, saying that any agreement with the US would only move forward if it provided clear benefits for the country.Currently, most Indian exports to the US are subject to a 10% duty. The Trump administration is expected to announce higher tariffs later this month as it investigates alleged industrial overcapacity. India rejected the US accusations.Washington has also proposed additional tariffs of up to 12.5% ​​on imports from several countries, including India, arguing they have failed to prevent goods produced with forced labor from entering global supply chains.A US source familiar with the talks told Reuters that Washington believes India must make mutual concessions before receiving the preferential trade treatment it seeks.Another US official, who requested anonymity, said talks were ongoing and Washington still expected an agreement to be reached, although a timetable had not yet been set. The official added that India had been “slow, bureaucratic and difficult” at times during the negotiations, suggesting a quick breakthrough was unlikely.Responding to the impasse, White House spokesman Kush Desai said: “The Trump administration continues to engage productively with Indian officials to finalize a historic trade agreement that puts Americans and America first.”Trade experts quoted by Reuters said India’s improving economic performance has strengthened its bargaining position. India’s goods exports rose about 15% year-on-year in April-June despite disruptions caused by the Iran conflict, helped by rising oil supplies.Exports to the Gulf countries recovered to pre-war levels, rising to $5.3 billion in May from $2.62 billion in March as exporters switched to alternative shipping routes. Exports to the US also increased to $17.29 billion in April and May.India is also expanding access to other major markets. A free trade agreement with the United Kingdom is expected to come into effect this month, while negotiations on a trade deal between India and the European Union are moving forward with both sides aiming for an agreement early next year.Goldman Sachs economist Santanu Sengupta said easing tensions between the US and Iran has improved India’s economic prospects by easing pressure from oil prices. The investment bank raised India’s 2026 growth forecast to 6.8% while lowering estimates for inflation and the current account deficit, giving New Delhi more room to negotiate without urgency.The weakening rupee has also boosted the competitiveness of Indian exporters. Another Indian official told Reuters that New Delhi was also considering the possibility that some proposed US trade measures could face legal or political challenges.Rejecting the Reuters report, Goyal said on X: “This news is completely false, baseless and misleading.”“I had fantastic meetings with US Trade Representative Jamison Greer, @USTradeRep, when he visited Delhi in June. Both sides reaffirmed their commitment to an agreement that is balanced, commercially meaningful and delivers tangible benefits for businesses, farmers, workers and consumers in both countries. Our teams remain fully committed to achieving this goal,” he added.