India-US trade relations, despite bilateral trade crossing $200 billion in FY24, face friction over tariffs, market access, and data regulations. “We have problems with the United States today—primarily that we haven’t yet found a landing point in our trade talks,” Jaishankar said. He also described U.S. tariffs on Indian products and restrictions related to Russian energy imports as discriminatory, pointing out that even countries with stricter relations with Russia have not faced similar measures.
India’s Red Lines
For India, the “red lines” include energy security, data sovereignty, and protection of domestic industries, aligned with the Atmanirbhar Bharat vision.
A senior commerce official noted, “Energy affordability is non-negotiable. We import where it is practical and beneficial for Indian consumers, irrespective of external pressure.”
Weaponisation of Global Systems
Jaishankar highlighted a worrying global trend: the weaponisation of trade, finance, and technology by major powers. Unilateral sanctions, freezing of sovereign funds, and restrictions on critical minerals, he said, reflect a shift toward competitive nationalism.
“Crypto, energy geopolitics, and competition for critical minerals are now shaping global rivalries,” he added, reinforcing India’s emphasis on strategic autonomy and a multipolar international order.
Shifting Global Energy Dynamics
Jaishankar noted that the U.S. has transformed from a net energy importer to a major exporter, while China leads in renewables. “India must balance fossil fuel needs for immediate development with the goal of generating 50% of energy from renewables by 2030,” he said.
Why the Trade Deal Matters
An India-US trade pact could expand market access, enable technology transfer, and strengthen supply chains, but issues remain over data localisation, digital taxation, and agricultural market access. Analysts say Jaishankar’s assertive stance signals India’s growing confidence as a fastest-growing major economy, insisting that any deal must ensure mutual respect rather than one-sided dependence.
Election-year politics in the U.S. may further slow progress, with major concessions unlikely before 2026.
Balancing Growth With Sovereignty
India is pursuing strategic autonomy with global engagement, aiming to integrate with the world economy while retaining control over energy, defence, and technology. Talks may focus on a limited package easing tariffs in pharma, IT services, and select agricultural products, while challenges over intellectual property, dairy, and medical devices persist.
The Road Ahead
Momentum toward a broader trade understanding is gradually building, with top-level talks expected at the India-US Trade Policy Forum later this year. Analysts note India is moving from a rule-taker to a rule-shaper in global trade, bargaining from strength.
A senior ICRIER economist observed, “The world recognises that any meaningful global supply chain must include India. Current negotiations emphasise mutual respect, not unilateral expectations.”
Conclusion
Jaishankar’s clear articulation of India’s red lines reflects a shift toward assertive, self-reliant, and strategically balanced foreign policy. While Washington remains a key partner, New Delhi is determined to safeguard autonomy in energy, technology, and tariffs. The coming months will test whether pragmatism can prevail over protectionism, potentially establishing a fair, balanced trade framework that strengthens both democracies as economic and strategic partners.
