India Aims to Fast‑Track US Trade Deal While Citing China’s Non‑Tariff Barriers, Says Finance Minister

Finance Minister Nirmala Sitharaman said on Friday that India hopes to seal the pending trade agreement with the United States as soon as possible, citing global trade benefits and stronger bilateral ties. She noted that Commerce and Industry Minister Piyush Goyal announced on Thursday that the first phase of the pact has been finalised and is now in legal drafting. Sitharaman highlighted that India’s trade imbalance with China and persistent market‑access restrictions remain major concerns despite years of talks. She said India has sought entry for generic medicines, bovine meat, vegetables and other perishables, but progress has been limited. "Non‑tariff barriers are the biggest hurdle in the trade between India and China," she told the Atlantic Council in Bangkok, adding that China uses phytosanitary measures and other restrictions. India, she explained, prefers negotiation over punitive tariffs to address large imbalances, even if the process takes time. On BRICS, the minister described the grouping as a partnership aimed at improving welfare, not as a counter‑balancing bloc. BRICS represents nearly 40 % of the world’s population, and with new members, about 11‑12 countries now account for roughly 45 % of global trade. Sitharaman also praised India’s sustained strong growth, calling it the world’s fastest‑growing major economy over the past four to five years. She attributed this to inclusive growth, wider resource access, skill development, fiscal prudence and higher public capital expenditure. Public infrastructure spending, she said, generates a stronger multiplier effect than direct cash transfers and creates jobs without adding pressure on the fiscal deficit. Government borrowing is aligned with asset creation, which she said has benefitted the economy.

Context

India’s push for a quick US trade pact reflects a strategy to diversify markets amid challenges with China. The emphasis on infrastructure and skill development underpins the country’s growth model, while BRICS cooperation offers an additional platform for trade expansion.