India Open to 'Big, Beautiful Deal' with US, But Draws Red Lines: FM Sitharaman
- FM Nirmala Sitharaman says India is ready for a "big, beautiful" trade pact with the US.
- Agriculture and dairy sectors are non-negotiable to protect domestic livelihoods.
- India sees early agreements with strong economies as crucial to its Viksit Bharat 2047 vision.
With the July 9 deadline to avert US-imposed tariffs fast approaching, India has signalled its readiness to strike a mutually beneficial trade agreement with the United States but not at the expense of its core domestic interests. Finance Minister Nirmala Sitharaman has firmly stated that India is open to a comprehensive trade deal, provided it protects key sectors such as agriculture and dairy.
In an interview with The Financial Express, Sitharaman said, “We would love to have an agreement, a big, good, beautiful one; why not?” Her comments come in response to US President Donald Trump’s recent remark that a trade agreement with India could 'open up' its markets to American products.
Sitharaman acknowledged the importance of economic partnerships with major global powers like the US but emphasised that India’s stance on certain sectors is non-negotiable. “At the junction we are in, and given our growth goals and ambition to be Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us”, she noted.
However, she made it clear that the livelihoods of millions of Indian farmers and dairy producers are not up for compromise. “Agricultural and dairy sectors remain very big red lines,” she asserted, highlighting that any trade agreement must respect the sensitivities of these vulnerable sectors.
Trade negotiations between India and the US have seen ups and downs in recent years, often snagging on issues such as market access, tariffs, intellectual property rights, and digital trade norms. While New Delhi is looking to expand its export footprint and secure technology cooperation, Washington has been pushing for greater access for American dairy, poultry, and agricultural products a move India views with caution.
Meanwhile, in the US, President Trump’s domestic economic agenda made progress as Senate Republicans advanced his proposed ‘Big Beautiful Bill’. On Saturday, the Senate narrowly passed a motion 51-49 to begin formal debate on the 940-page legislation. Two Republican senators voted against the motion, joining Democrats in opposing the bill, although Vice President JD Vance was ready to cast a tie-breaking vote if needed.
The proposed package includes significant tax cuts, sweeping fiscal reforms, and a strong focus on border security. Key provisions involve slashing $1.2 trillion from Medicaid and food stamp programmes by tightening eligibility and enforcing work mandates. The bill also proposes eliminating billions in green energy subsidies, a move that Democrats argue could severely impact the wind and solar sectors.
In addition, the legislation earmarks $350 billion for national and border security measures, including stepped-up deportation efforts. Funding for these initiatives would partly come from new immigration fees.
As India and the US navigate their respective political and economic priorities, the outcome of both the trade discussions and the US legislative developments could shape the future trajectory of bilateral ties.
