Commerce and Industry Minister Piyush Goyal has signalled a pragmatic and phased strategy for ongoing India-US bilateral trade negotiations, emphasising the importance of securing immediate gains—what he terms "low-hanging fruit"—before tackling more complex and contentious issues.

This approach is designed to accelerate tangible benefits for both economies by focusing initially on sectors where consensus is readily achievable and where barriers to agreement are minimal.

Goyal’s remarks, made during his official visit to Switzerland, underscore India’s willingness to adopt a flexible and results-oriented negotiation framework. He highlighted that India is prepared to finalise trade agreements by addressing non-controversial areas first, allowing businesses and industries in these sectors to start benefiting immediately. “Why waste time waiting for everything to be perfect when we can first capture the low-hanging fruit and start benefiting those sectors immediately?” Goyal stated, reflecting a broader philosophy of incremental progress over prolonged, all-encompassing negotiations.

To illustrate this strategy, Goyal referenced India’s recent trade agreement with Australia, where both nations implemented an initial tranche focused on mutually beneficial sectors. This first phase led to a significant boost in bilateral trade, while discussions on more challenging issues continued in parallel. He also revealed that a similar phased approach was offered to the UK, indicating that India is open to replicating this model with other major trading partners.

The ongoing India-US trade talks, which began on June 4 and were scheduled to conclude on June 10, are viewed as a crucial step toward strengthening the strategic economic partnership between the two countries.

The discussions are being led by high-level delegations, with India’s chief negotiator, Special Secretary Rajesh Agrawal, engaging directly with US counterparts. The negotiations are part of a broader initiative to establish a limited trade agreement before a July 9 deadline, with the aim of lifting reciprocal tariffs and enhancing market access, particularly in agriculture and automotive sectors.

Goyal’s optimism about the negotiations is palpable. “I am a born optimist, and working with Prime Minister Modi brings even more enthusiasm and self-confidence,” he remarked, reflecting confidence in the potential for near-term progress. However, he maintained that details of the negotiations remain confidential, underscoring India’s preference for closed-door discussions to facilitate candid and constructive dialogue.

Industry experts suggest that the outcome of these talks could have far-reaching implications for global trade patterns and supply chain configurations, especially in key sectors such as technology, pharmaceuticals, defense, and agriculture. The minister’s emphasis on securing quick wins aligns with India’s broader strategy of building momentum in trade relationships through incremental progress, rather than waiting for comprehensive agreements that might take years to finalise.

Goyal’s advocacy for a phased, pragmatic approach to trade negotiations with the US reflects India’s strategic intent to unlock immediate economic benefits while laying the groundwork for more ambitious, long-term agreements. This strategy not only accelerates trade gains but also fosters a more resilient and integrated global supply chain, positioning India as a proactive and flexible partner in international trade.

Based On ANI Report