India-US trade pact could significantly boost India’s economy by expanding market access, strengthening trade ties and diversifying partnerships, External Affairs Minister S. Jaishankar said, while stressing multi-alignment, balanced global trade relations and diplomatic efforts to protect civilian shipping.
External Affairs Minister S. Jaishankar has described the proposed India-US bilateral trade agreement as a major opportunity for the Indian economy, saying the pact could provide a significant boost by expanding access to one of the world’s largest and most lucrative markets.
Speaking at the Kautilya Economic Conclave on Monday, organised around the theme “India and the World: Adaptive by Design,” Jaishankar said the proposed agreement represented a “big step with great possibilities” for India. He emphasised that greater market access and stronger economic engagement with the United States could contribute to the country’s broader economic growth and development objectives.
Jaishankar also called for a more objective assessment of the global trade system, saying the United States should not be held responsible for all the distortions affecting international commerce. According to the External Affairs Minister, several market distortions have emerged from sources beyond Washington, making it necessary to examine the global trading environment in a balanced manner.
The minister highlighted the importance of the United States to India, describing Washington as a major economic, trade and defence partner. He said India’s recently concluded trade agreements with the European Union, the United Kingdom and the European Free Trade Association could also help create greater balance in the country’s international trade relationships.
Jaishankar noted that India’s earlier free trade agreements had largely concentrated on countries and economies in the Asian region, including ASEAN members, Japan and South Korea. He said there was now a need for India to diversify its economic engagement towards economies with more transparent and mature markets, as well as stronger purchasing power.
The External Affairs Minister linked the approach to India’s broader foreign policy strategy of “multi-alignment”. He said New Delhi had strengthened or improved its relationships with China, Russia and countries in the Gulf while simultaneously pursuing opportunities with other major global partners.
According to Jaishankar, India’s foreign policy seeks to advance relationships based on the opportunities and challenges associated with each partner. He said every relationship could ultimately be a net positive for India and that progress with one partner could create additional opportunities for advancing the country’s interests on other fronts.
The minister also addressed concerns related to global security and civilian shipping. He said India considers attacks on civilian shipping to be “completely unacceptable”, irrespective of whether such incidents occur in the Black Sea, Red Sea or Gulf region.
On the Russia-Ukraine conflict, Jaishankar reiterated India’s position that dialogue and diplomacy remain the way forward. He said India was engaging with both Russia and Ukraine to facilitate the safe passage of grain and fuel shipments from the Black Sea.
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His remarks came in the backdrop of attacks on civilian shipping in July, in which some Indian sailors were killed. Jaishankar stressed the importance of ensuring the safety of civilian maritime traffic and maintaining diplomatic engagement amid continuing geopolitical tensions.
The External Affairs Minister’s comments underline India’s effort to combine economic diversification with a broader multi-alignment strategy. The proposed India-US trade agreement, if concluded, could therefore become an important component of India’s efforts to expand market access, strengthen economic partnerships and deepen its engagement with major global economies.
