India open to 'big, beautiful deal' with US, says FM Nirmala Sitharaman

Business Standard

6 hours ago

With the July 9 deadline to avoid US tariffs approaching, the Centre appears ready to push for a mutually beneficial trade agreement with the US — while drawing firm boundaries on issues critical to its domestic interests.
During a conversation with The Financial Express, Finance Minister Nirmala Sitharaman emphasised that India is not averse to striking a comprehensive trade pact with the United States, provided the nation's core concerns, especially regarding farmers and livestock producers, are respected.
'We would love to have an agreement, a big, good, beautiful one; why not?' Sitharaman said, responding to President Donald Trump's recent claim that a bilateral trade agreement with India would 'open up' its markets to US products.
Agri and dairy sectors are 'very big red lines', says FM
Speaking about the ongoing negotiations, Sitharaman made it clear that while India seeks to boost its economic ties with strong global economies like the US, it will not compromise on areas that affect vulnerable domestic sectors.
'At the junction we are in, and given our growth goals and ambition to be Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us,' the Finance Minister said, as quoted by The Financial Express.
She underlined that agricultural and dairy sectors remain 'very big red lines' in the bilateral trade agreement talks, suggesting that India has taken a cautious approach to safeguard the livelihoods of millions dependent on these sectors.
Trump's 'big beautiful' Bill moves forward
The US President's economic agenda took a step forward as Senate Republicans cleared a procedural hurdle for his proposed 'Big Beautiful Bill' on Saturday. The package — featuring tax cuts, fiscal tightening, and a focus on border enforcement — still faces challenges before final approval.
In a narrow 51-49 vote, the Senate agreed to begin formal debate on the 940-page Bill. US Vice President JD Vance was on standby to break a potential tie, although his vote was not required. Notably, two Republican senators broke ranks and voted against the motion, aligning with the Democrats.
Tax cuts, deficit concerns
Central to Trump's plan is an estimated $3.8 trillion-$4 trillion in tax cuts, including the extension of 2017 tax rates and new proposals like exempting tips from taxes. Republicans argue the Bill is essential to avoid automatic tax hikes when Trump's previous tax breaks expire in December.
However, a recent analysis by the Congressional Budget Office revealed troubling projections. If enacted, the Bill could lead to 11.8 million more uninsured Americans by 2034 and swell the national deficit by $3.3 trillion over the next decade, Associated Press reported.
The Bill has also sparked divisions within the Republican ranks. Some lawmakers are pressing for sharper reductions, especially in healthcare spending, leading to a rare cautionary note from Trump himself.
Provisions include eliminating billions in green energy subsidies — something Democrats warn could cripple wind and solar sectors — and cutting $1.2 trillion primarily from Medicaid and food stamp programmes by tightening eligibility and enforcing work mandates.
The proposed legislation also allocates $350 billion toward national and border security, including enhanced deportation measures. This portion of the Bill would be partly funded by imposing new fees on immigrants.