American economist Jeffrey Sachs has cast doubt on the possibility of a successful trade agreement between India and the United States, stating that he would be “extremely surprised” if such a deal were to materialise. Speaking at the ‘Rising Bharat Summit’ hosted by Moneycontrol, Sachs raised concerns about the U. S. government’s genuine interest in fostering India’s economic growth, suggesting that the current administration had no real incentive to prioritise India’s progress.
Sachs, a prominent critic of U. S. foreign policy, explained that the Trump administration had largely ignored India’s economic ambitions, focusing instead on maintaining a power dynamic that favoured U. S. interests. His comments come as both countries have continued negotiations on trade matters, but without a significant breakthrough in sight.
The economist further argued that the geopolitical interests of the United States in South Asia had typically leaned towards keeping India in a weaker position, particularly in relation to its regional rivals. Sachs noted that while both nations have shared strategic and security concerns, such as countering China’s growing influence, the trade relationship has often been secondary to broader geopolitical goals.
At the summit, Sachs’s remarks sparked further debate about the nature of the trade ties between India and the United States. In recent years, both countries have struggled to overcome trade barriers such as tariffs, intellectual property rights, and market access restrictions. Despite multiple rounds of talks, no concrete agreement has been reached, with both sides often accusing each other of protectionist policies.
India has long been pushing for greater access to U. S. markets, particularly in sectors such as agriculture, information technology, and pharmaceuticals. However, Washington has remained cautious, citing concerns over India’s domestic regulations and practices, which they argue hinder American companies’ ability to compete effectively.
One of the most contentious issues has been India’s stance on data localisation and e-commerce rules, which have frustrated American tech giants. The U. S. has sought a more open digital economy, but India has insisted on policies that promote local data storage and protect domestic industries. Sachs, known for his critical stance on the U. S. government’s foreign policies, argued that such disputes would continue to plague the trade discussions, with little resolve under the current leadership.
Sachs also pointed to the U. S.’s inconsistent approach towards international trade agreements, particularly its withdrawal from multilateral trade arrangements such as the Trans-Pacific Partnership. He noted that the Trump administration’s “America First” approach had not only strained relations with traditional allies but also made it harder for countries like India to navigate trade deals with the U. S.
Despite these challenges, India has expressed hope that the bilateral relationship can evolve into a more robust economic partnership. Both nations have recognised the importance of strengthening ties in the face of global challenges, including the economic rise of China and shifting dynamics in the Indo-Pacific region.
However, experts remain divided on whether these strategic interests will be enough to overcome the deep-rooted trade issues. Some argue that while the geopolitical alignment between India and the United States has strengthened, trade friction will persist unless both countries can align on key economic reforms.
