Piyush Goyal denies reports of stalled US trade talks as 'false and misleading

India has pushed back against reports suggesting that trade negotiations with the United States have hit a roadblock, with Commerce and Industry Minister Piyush Goyal calling such claims "completely false, baseless, and misleading."

The clarification comes hours after Reuters reported that India had rejected the possibility of a quick trade agreement with the US, choosing instead to hold out for a pact that better serves its long-term economic interests. The report had said negotiations had slowed as Washington did not provide assurances on some of New Delhi's key demands, including tariff advantages over competing economies such as China and protection from future US levies.

Responding to those reports, Goyal said he had "fantastic meetings" with US Trade Representative Jamieson Greer during his visit to New 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," Goyal said in a post on X.

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He added that "our teams remain fully engaged in achieving this objective," signalling that negotiations are continuing despite differences over key issues.

India remains firm on core interests

The Reuters report, citing officials and analysts, said India is unwilling to rush into an interim agreement that compromises on sensitive sectors such as agriculture.

"Our position is clear—we don't intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," an Indian official had told Reuters.

A day after his meeting with Greer, Goyal had also said that any agreement with Washington would move forward only if it offered a clear advantage to India, indicating that New Delhi was under no immediate pressure to conclude a deal.

Strong economy gives India negotiating leverage

Analysts told Reuters that India's resilient economic performance has strengthened its bargaining position.

India's goods exports rose around 15% year-on-year during April-June despite global disruptions, while exports to the US increased to $17.29 billion during April and May. Shipments to Gulf markets have also recovered following disruptions linked to the West Asia conflict.

At the same time, India has expanded trade ties with other major partners. The India-UK Free Trade Agreement is set to come into force this month, while negotiations for a trade pact with the European Union are expected to conclude early next year.

Wendy Cutler, Senior Vice President at the Asia Society Policy Institute and a former US trade official, told Reuters that India's economic resilience, diversification of trade partnerships and growing strategic importance have given negotiators greater leverage.

Goldman Sachs has also upgraded India's 2026 growth forecast to 6.8%, while lowering its inflation and current account deficit projections, further easing pressure on New Delhi to secure an early agreement.

Agriculture remains a key sticking point

The Modi government has consistently maintained that agriculture remains a non-negotiable issue in trade talks.

Trade experts say India is unlikely to open its farm sector without adequate safeguards for farmers and food security.

Ajay Srivastava, founder of the Global Trade Research Initiative, told Reuters that delaying a rushed agreement could be more beneficial than accepting commitments with long-term costs.

For now, while India continues to insist that any trade agreement must protect its strategic interests, Goyal's latest remarks underscore that negotiations with Washington remain active and that both sides continue to work towards a mutually beneficial deal, countering speculation that talks have stalled.