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India says ball in US court on trade deal a day after conclusion of historic deal with Europe

GenevaTimes by GenevaTimes
January 28, 2026
in Business
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India says ball in US court on trade deal a day after conclusion of historic deal with Europe
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Moving to close a trade agreement with India is largely up to Washington, with New Delhi having already put its offers on the table, senior government officials said on Wednesday, cautioning that public remarks from members of the US administration should be viewed in perspective.

According to officials, the substantive details of the negotiations are known to the US Trade Representative (USTR) and the negotiating teams, rather than to some individuals who may be making public comments. “What India had to offer has been done. Any statements by others in the US administration need to be seen in that context,” a senior official said, adding that the ball is now in the US court.

Top officials said India–US discussions were underway in parallel even as negotiations for the India–European Union free trade agreement entered their final stretch, underlining that New Delhi has been pursuing multiple trade tracks simultaneously. “The two sides are in talks, and even while the EU conversation was underway, the two sides were in touch,” the official said, adding that India remains focused on getting the US trade deal “across the finish line”.

On the India–European Union free trade agreement, officials clarified that the timing reflected the maturity of discussions rather than any reaction to developments on the US front. “It made sense to expedite the EU agreement because those negotiations were underway much before the US FTA,” a top government negotiator said.

Dismissing suggestions that progress on the India–EU deal was a knee-jerk response to uncertainty around the US deal, officials stressed that both tracks are being pursued independently. “The India–EU agreement is not a reaction to whatever may or may not be happening with the US deal. Each negotiation has its own trajectory and strategic rationale,” another senior official said.

India and the European Union concluded negotiations for the long-pending free trade agreement on Tuesday, marking a major milestone in India’s trade diplomacy after years of intermittent engagement. Officials said the agreement provides for phased duty concessions by both sides, improved market access for goods and services, and stronger frameworks for investment and regulatory cooperation.

Under the pact, India has agreed to calibrated tariff reductions on select industrial products, automobiles and premium consumer goods over extended transition periods. In return, the EU has offered meaningful duty concessions for labour-intensive Indian exports such as textiles, garments, leather goods and engineering products—sectors seen as critical for employment generation.

The agreement also includes commitments on services, government procurement, intellectual property, digital trade and sustainable development, while preserving policy space for domestic priorities.

Officials said the EU deal talks gained momentum as global trade conditions became more volatile. The broader push to conclude agreements has been driven by concerns over the growing weaponisation of trade and vulnerabilities in global supply chains.

“The decision to move decisively on the EU deal was taken as early as February last year,” a senior official said, noting that supply-chain resilience and long-term economic security are now central to India’s trade strategy.

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