"Trade Deal With US New Economic Pillar": India's Washington Envoy To NDTV

Calling the proposed India-US trade agreement a "new economic pillar" in the bilateral relationship, India's Ambassador to the United States and former Foreign Secretary Vinay Mohan Kwatra has said the framework announced recently reflects a carefully negotiated, balanced and mutually beneficial outcome that protects India's core interests while opening up vast economic opportunities.

Speaking in an exclusive interview with NDTV's Senior Executive Editor Aditya Raj Kaul, Kwatra underlined that the agreement, announced through a joint statement following a telephonic conversation between Prime Minister Narendra Modi and US President Donald Trump, should not be viewed narrowly as a trade arrangement.

"As far as India and the United States are concerned, as far as our economic cooperation is concerned, this trade agreement should be seen as a new economic pillar," Kwatra said, adding that stakeholders across India, from industrialists and CEOs to farmers and the agri-community, broadly recognise the importance of the framework.

From Joint Statement To Year-Long Negotiations

Kwatra placed the agreement firmly in the context of the February 2025 joint statement issued after PM Modi's visit to the US. That statement, he noted, laid down two clear instructions from the two leaders: to raise bilateral trade from around $200 billion to $500 billion by 2030, and to negotiate a "regional, multilateral and mutually beneficial" trade agreement.

"These two main instructions were issued under the directions of Prime Minister Modi and President Trump. After that, this negotiation went on for a whole year," the ambassador said, stressing that the final outcome mirrors the original mandate of being "fair and balanced."

Rejecting any attempt to personalise the negotiations, Kwatra said the talks were led by a full government team. "Whenever there is a negotiation between two countries, that negotiation is always led by a team," he said, noting that the External Affairs Minister Dr S Jaishankar and Commerce Minister Piyush Goyal travelled to the US multiple times and that India's chief negotiators worked intensively behind the scenes.

Strategic And Economic Logic

Beyond trade volumes, Kwatra highlighted the strategic logic underpinning the agreement. With the US, a $30 trillion economy and India the world's fastest-growing major economy, he said a closer economic compact would generate "very extensive and sustainable economic opportunities."

He pointed to labour-intensive products, industrial goods and agri-exports as areas where India could benefit from access to the vast US market. The agreement, he said, would also boost foreign direct investment flows critical to India's long-term development vision leading up to 2047.

"The flows, the level, the direction of foreign direct investment  - this trade compromise will give a special boost to India-US cooperation," he said.

Safeguards On Agriculture And Dairy

Addressing concerns around sensitive sectors, particularly agriculture and dairy, Kwatra was categorical that India's red lines were protected. Referring to recent clarifications by the Agriculture Minister, he said India's agri-sensitive produce and dairy sector were "completely protected."

"This was not just the objective of our negotiators. This was our responsibility," Kwatra said, adding that self-reliant sectors and farmer interests remained central to India's negotiating position.

His remarks came amid scrutiny of a US fact sheet released after the joint statement, which was amended within 24 hours, and ongoing discussions around tariff structures.

Tariffs, Russia And The Road Ahead

On tariffs, Kwatra acknowledged the significance of the recent US executive order that removed a 25 per cent additional tariff, bringing the overall level down to around 18 per cent. While talks continue, he pointed out that all technical aspects would be finalised before the formal signing, which officials have indicated could take place as early as March.

He also addressed questions around references to Russian oil, saying the issue was clearly covered in the joint statement and that the document remains the authoritative guide to the agreement's scope.

Broader Strategic Momentum

Kwatra placed the trade deal within the larger arc of India-US ties, which mark over two decades of strategic partnership and enjoy strong bipartisan support in Washington. "Whether it is defence and security, science and technology, people-to-people ties, trade, capital flows or space, you will find a very significant partnership between India and the US," he said.

He expressed confidence that the conclusion of the trade framework would add momentum across sectors, ensuring "no area will be left behind."

AI, innovation And The Global South

The ambassador also highlighted the upcoming AI Impact Summit in India, describing it as a milestone for the Global South. India, he said, is among the world's top countries in artificial intelligence, and in some areas "above the first three."

"The biggest delegation is coming from the US for the AI Impact Summit," Kwatra noted, pointing to collaboration across the full AI value chain - from energy and infrastructure to large language models and adoption.

For Kwatra, the underlying philosophy remains people-centric. "AI Impact is not limited to wealth creation, but what is the value creation for society," he said, linking India's digital public infrastructure experience to its global ambitions.

As India and the US move towards finalising the trade agreement, the ambassador's message was clear: the deal is not an endpoint, but a foundation for deeper economic, strategic and technological convergence in the years ahead.