At the recent BRICS summit in Rio de Janeiro, Prime Minister Narendra Modi strongly condemned Pakistan for its support of terrorism. Modi expressed his gratitude to the nations that stood with India in denouncing the terror attack in Pahalgam, Jammu and Kashmir, where 26 tourists were killed. He asserted that India is a victim of terrorism, while Pakistan is a supporter, emphasizing that victims and supporters cannot be judged by the same standards. Modi also criticized those who remain silent on terrorism for personal or political gain, stating that silent consent to terrorists should not be acceptable.
India has presented clear evidence, demonstrating Pakistan's use of terrorism as a state policy by harboring terrorists on its soil. Following the Pahalgam attack, India launched Operation Sindoor, targeting terror infrastructure and military assets in Pakistan, including airbases and anti-aircraft missile systems.
The BRICS nations issued a joint declaration, the 'Rio de Janeiro Declaration,' which strongly condemned all acts of terrorism as criminal and unjustifiable, regardless of motivation, location, or perpetrator. The declaration specifically condemned the Jammu and Kashmir attack on April 22, 2025, reaffirming their commitment to combating terrorism in all forms, including cross-border movement, financing, and safe havens.
Meanwhile, trade negotiations between India and the United States have hit a rough patch, with disagreements persisting in the agriculture and auto sectors. India has drawn its "red lines" in the ongoing discussions, particularly concerning agriculture and dairy, ahead of President Trump's July 9 tariff deadline. India seeks complete exemption from the 26% tariffs. Commerce Minister Piyush Goyal has emphasized that India will only finalize trade deals that are mutually beneficial and protect national interests. He stated that India is in no rush to sign a deal that risks its core economic interests and will not be pressured by arbitrary deadlines.
Negotiations for an interim trade pact are nearing conclusion, with hopes of an announcement soon. The Indian team, led by chief negotiator Rajesh Agrawal, has returned from Washington after talks from June 26 to July 2. Discussions are ongoing to resolve issues in the agriculture and auto sectors. India is seeking duty concessions for labor-intensive sectors like textiles, gems and jewelry, and leather goods, while the U.S. wants concessions on agricultural products. The U.S. also seeks duty concessions on industrial goods, automobiles (especially electric vehicles), wines, and genetically modified crops.
The first phase of the India-US Bilateral Trade Agreement (BTA) is awaiting President Trump's approval after being approved by U.S. Trade Representative Jamieson Greer. Key sticking points include agriculture, dairy, digital issues, genetically modified seeds, and medical services. India's merchandise exports to the United States increased by 21.78% to $17.25 billion in April-May of the current fiscal year, while imports grew by 25.8% to $8.87 billion. The bilateral trade for 2024-25 reached $131.84 billion, with $86.51 billion in exports and a trade surplus of $41.18 billion. Both nations aim to more than double bilateral trade to $500 billion by 2030.
