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Informist, Wednesday, Oct. 8, 2025

 

--Minister Goyal:Taking stock of US govt shutdown impact on trade deal talks 

--Minister Goyal:To get clarity in wk on how trade talks go amid US shutdown 

 

By Krity Ambey

 

MUMBAI – The Indian government, which is currently taking stock of the possible impact of the government shutdown in the US on the ongoing trade deal negotiations between New Delhi and Washington, may get clarity on the matter in a week, Commerce and Industry Minister Piyush Goyal said Wednesday.

 

It has only been a week since the shutdown in the US, Goyal told Informist on the sidelines of the Global Fintech Fest, adding that his department is taking stock of the matter. They expect some clarity to emerge in another week, he said.

 

The US government shut down on Oct. 1 after the Congress failed to pass a funding bill. This means US government workers will not get paid for now, and service centres will stay closed during the period. Only essential services like postal service, defence, and social work are operational.

 

Trade deal negotiations are usually an ongoing process, and the dialogues are continuing, Goyal said. But the timeline for the next round of negotiations (with the US) is yet to be finalised, according to Goyal.

 

The government shutdown in the US may derail the two sides' plan to seal the trade deal by November. Meanwhile, in the absence of a trade deal, Indian goods remained subject to 50% tariffs in the US.

 

Last month, Goyal had visited Washington and met US Trade Representative Jamieson Greer. After the visit, the commerce ministry, in a statement, said that both sides exchanged views on contours of the deal and decided to continue the engagements with a view to achieve early conclusion of a mutually beneficial trade agreement. But the lack of mention of any meeting between Goyal and US Commerce Secretary Howard Lutnick was telling. Lutnick has been pretty vocal about Washington's displeasure over New Delhi's unwillingness to open the farm sector under the proposed Bilateral Trade Agreement.

 

The course of trade negotiations between India and the US has seen considerable ebb and flow in the last seven months, with the two sides hitting a stalemate in August over disagreement on the farm sector. The trade negotiations resumed in September. But with the government shutdown in the US, the future course of talks remains uncertain.

 

The US tariffs cast a long shadow on over $50 billion of Indian exports from labour-intensive sectors like textile, gems and jewellery, marine products, furniture and bedding, among others. In 2024-25 (Apr-Mar), India had exported $86.51 billion of goods to the US, and had a trade surplus of $40.82 billion with the US.  End

 

US$1 = INR 88.80

 

Edited by Tanima Banerjee 

 

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