PM Modi's business-like response to Trump's posts indicates India will stick to red lines

NEW DELHI: PM Narendra Modi's last two posts on X responding to US President Donald Trump's comments are being watched as much for what they omit - any mention of his personal friendship with the American president - as for what they contain.

On Saturday and again early Wednesday, Trump on Truth Social referred to his "good friend" Modi, the latest post mentioning continuing talks on reducing trade barriers. But the PM's responses stressed India-US ties, an indication, according to sources, that trade talks will be "business-like," with India sticking to its red lines - including a refusal to slash import duties on agricultural and dairy products and an assertion of its sovereign right to decide purchases of commodities, especially crude petroleum.


While the govt acknowledges the crucial role of relations with the US and the impact that the 50% tariffs will have on some businesses, it is also clear that any trade deal has to be on mutually beneficial terms. India is keen on building safeguards into the agreement for vulnerable groups such as small farmers. In addition, there will be no compromise on health concerns (read GM food) or cultural issues (such as cattle feed containing animal parts), sources reiterated.

Officials suggested the govt will tread cautiously given the unpredictability of talks with the Trump administration, where the president decides everything and secretaries - however voluble - are largely limited to presenting the state of play.

Multiple sources told TOI that negotiations for a bilateral trade deal were on track until Trump waded in with demands difficult for India to accept. Significant concessions had already been offered, including tariff reductions and commitments to purchase more American products such as oil and gas, to address DC's concerns over the "large" trade surplus.

Officials here are also wary of the pressure Trump has brought upon himself by boasting he could restore peace between Russia and Ukraine. Having failed to deliver, he has looked for alternative targets like India to distract attention, sources said. With the European conflict increasingly intractable, the risk of US policy veering unpredictably will continue to lurk.

Trump's calculation was that India would eventually fall in line, as Japan, South Korea, Vietnam, Indonesia and even the EU had done. But New Delhi was angered by his repeated claims of mediating a ceasefire between India and Pakistan despite Modi's categorical rebuttals. This hardened resistance to further concessions in sensitive areas.

The govt, however, has not abandoned hopes of clinching a deal by the Fall, with the commerce minister recently mentioning Nov as a possible timeline. At the same time, it has refrained from escalating matters by retaliating against the "secondary tariffs" of 25% imposed on Indian exports to the US. Instead, India is focusing on widening market access elsewhere through trade pacts and boosting exports of products such as seafood to Europe and the UAE.