Efforts are underway to reach a trade agreement between India and the US, according to External Affairs Minister S Jaishankar. He emphasised that any deal must respect India’s boundaries. This comes amid strained ties due to US tariff policies. Jaishankar acknowledged unresolved issues, noting some aspects can be negotiated while others cannot.

The relationship between New Delhi and Washington has been under pressure since US President Donald Trump increased tariffs on Indian goods in August. The tariffs rose to 50%, including a 25% duty on India’s Russian crude oil purchases. India criticised these actions as unfair and unjustified.

Trade Negotiations and Challenges

Jaishankar highlighted the need for a trade understanding with the US, given its status as the world’s largest market. He stressed that any agreement must respect India’s red lines. “There are things you can negotiate and there are things you can’t,” he stated.

Negotiations for a bilateral trade deal have resumed after a brief pause. However, significant differences remain in areas like agriculture and dairy. Despite these challenges, both nations are working towards an agreement.

Jaishankar noted that not all aspects of India-US relations are affected by these tensions. “A large part of the relationship is continuing as usual or even improving,” he said, indicating ongoing cooperation in various sectors.

Geopolitical Context and Economic Shifts

The minister also discussed global geopolitical changes, highlighting a shift in international regimes and rules. Economically, factors like ownership, security, and resilience are becoming as important as cost.

Jaishankar pointed out the competition for rare earths and critical minerals as a significant factor today. This situation encourages higher risk-taking while simultaneously prompting efforts to de-risk political and economic facets.

He expressed concerns about concentrating global manufacturing in one country, hinting at China. This concentration raises issues of supply chain fragility and narrowness.

Strategic Implications and Future Outlook

Jaishankar observed that alliances and understandings are being revisited globally. In major polities, belief in power balance seems diminished. Financially, sanctions have reached new levels, including sovereign asset seizures.

The minister emphasised that India must not only defend its current position but also continue its rise amidst these changes. “For us, just defending what we have is simply not good enough,” he remarked.

Discussing warfare’s evolving nature, Jaishankar cited conflicts like Azerbaijan-Armenia and Ukraine-Russia. These show contactless war with stand-off weapons can decisively impact outcomes.

A phone conversation between Prime Minister Narendra Modi and Trump last month initiated efforts towards a trade deal. Jaishankar reiterated the importance of respecting India’s red lines in any agreement with the US.

With inputs from PTI