New Delhi, October 25, 2025 — India has made it clear that it will not accept trade conditions that compromise its independent foreign policy, even as talks with the United States reach an advanced stage. Commerce Minister Piyush Goyal stated that India will reject any trade agreement that requires it to alter relations with other nations, emphasizing that “deals cannot come with a gun to our head”.
Speaking at the Berlin Global Dialogue, Goyal reaffirmed that India’s trade partnerships will always align with national interest, not geopolitical coercion. His remarks come amid tense negotiations with Washington, following President Donald Trump’s decision to impose 50% tariffs on Indian goods in retaliation for New Delhi’s continued imports of Russian oil.
Trade Talks Near Conclusion
Despite the friction, both sides appear close to resolving their differences. According to senior government officials, the India–U.S. trade pact is “very near” completion, with most issues “already converged”. The agreement is expected to reduce American tariffs on Indian exports from 50% to about 15–16% in exchange for phased adjustments in India’s Russian oil purchases.
U.S. economists at Nomura Holdings noted that any tariff reduction would “restore India’s competitiveness” in global trade, while lower duties could offset the economic impact of cutting discounted Russian crude. However, analysts caution that the indirect effect of rising global oil prices remains more significant than the direct trade impact.
Oil Imports Under Scrutiny
The latest U.S. sanctions on Russia’s energy giants Rosneft and Lukoil have further pressured Indian refiners, who are now reviewing contracts to ensure compliance. Experts believe these restrictions could finally prompt Indian companies to scale down Russian purchases and diversify energy sources toward the Middle East.
Still, Indian officials insist that the country’s energy policy will remain guided by national interests. “India’s import choices are determined by what is best for our energy security and economic stability,” a Foreign Ministry spokesperson said earlier this week.
Policy of Strategic Autonomy
Goyal’s remarks in Berlin underscored India’s steadfast pursuit of strategic autonomy—a principle that has defined its diplomatic stance since the Cold War. “If someone says we can’t work with the EU or Kenya, that’s not acceptable. India chooses its friends based on its own priorities,” Goyal asserted.
Analysts interpret this as a signal that while India is open to deeper economic partnerships with major powers, it will not compromise its policy independence for short-term trade gains. As drafting of the trade deal continues, both governments are weighing the balance between economic pragmatism and political signaling. Sources indicate that the final text could be ready within weeks, but both sides are treading carefully to avoid framing the agreement as either a concession or a capitulation.
If successful, the pact could mark a major reset in India–U.S. economic relations and potentially open pathways for broader cooperation across digital trade, manufacturing, and renewable energy sectors.
