India has conveyed to a parliamentary panel that it cannot compromise on certain "red lines" during trade negotiations with the United States, particularly concerning the agriculture and dairy sectors. Senior officials, including Foreign Secretary Vikram Misri and Commerce Secretary Sunil Barthwal, briefed the Parliamentary Standing Committee on External Affairs on Monday amidst growing uncertainty over the next round of talks, scheduled to begin in New Delhi from August 25.

The government's firm stance comes as India grapples with the impact of recently imposed tariffs by the U.S. President Donald Trump has declared that there will be no further trade talks until the tariff dispute is resolved. These tariffs, which went into effect on August 7, include a 25% duty on most Indian exports, excluding electronics, semiconductors, and energy products, with an additional 25% penalty planned from August 27 due to India's continued purchase of Russian oil. Sectors like auto parts, textiles, leather, and gems and jewellery are expected to be particularly affected.

During the briefing, the government emphasized its commitment to constructive dialogue while also acknowledging certain non-negotiable points. A source present at the briefing stated that there would be "no compromise" regarding U.S. demands to open India's agriculture and dairy sectors.

Despite the current trade tensions, the government stressed that the relationship with the U.S. remains strategically important. Officials stated that the relationship is "enduring, bipartisan, and rooted in shared democratic values" and should not be solely viewed through the lens of trade.

To mitigate the impact of the U.S. tariffs, India is focusing on export diversification. The government is intensifying efforts to leverage existing free trade agreements and expedite new ones with key partners such as the UK, the European Free Trade Association (EFTA), and the EU. Government functionaries noted that many countries, including traditional U.S. allies, were similarly affected by tariffs imposed by President Trump but later negotiated them down by making some concessions. As part of its mitigation strategy, the government is making concerted efforts to tap into the potential of India's existing trade agreements with partners like the UAE, Australia, ASEAN, Japan, Korea, and Mauritius.

The parliamentary panel, led by Congress MP Shashi Tharoor, also raised concerns about the use of a friendly country's soil by Pakistan Army Chief Field Marshal Asim Munir to make nuclear threats against India. Foreign Secretary Misri assured the committee that India would address this issue with the U.S..

Earlier in the week, responding to the U.S. tariffs, Tharoor emphasized the need for India to safeguard its own interests. He acknowledged the concerning changes in the relationship with the U.S., stating that India would need to consider various factors and explore potential solutions in the coming weeks.