No Trade Deal Without Preferential Treatment, Warns Former Diplomat Veena Sikri
Former diplomat Veena Sikri analyzes US Secretary of State Marco Rubio's visit and India's firm stance on preferential trade treatment.
India is maintaining a firm stance in its economic negotiations with the United States, signaling that a comprehensive US-India trade deal will remain unsigned unless New Delhi secures preferential treatment. This perspective comes amid high-level diplomatic movements, including the upcoming visit of US Secretary of State Marco Rubio to India.
The Strategic Significance of Marco Rubio's Visit
Former diplomat Veena Sikri, analyzing the current diplomatic climate in an interview with ANI, emphasized that the specific issues discussed during these high-level engagements are more critical than the visits themselves. A key highlight of Secretary Rubio's itinerary is a planned trip to Jamnagar.
According to Sikri, this visit is closely linked to massive industrial investments. Reliance Industries is investing in the construction of a refinery in the United States—the first of its kind to be built in America in 50 years. This follows an announcement by US President Donald Trump in March 2026 regarding a USD 300 billion partnership with Reliance for the "America First Refining" project located at the Port of Brownsville, Texas. The visit to Jamnagar is seen as a way for the US Secretary of State to witness the scale of Reliance's existing refining capabilities.
Tariffs, Russian Oil, and Global Energy Shifts
The trade relationship has been complicated by tariffs and global energy politics. Sikri noted that President Trump has indicated he will not impose the extra tariffs—which could have reached 100 per cent under the Lindsey Graham bill—despite India's continued purchase of oil and petroleum products from Russia.
This shift is part of a broader global energy realignment. Sikri revealed that President Trump has a separate agreement with Russia to lift certain sanctions in exchange for large quantities of diesel supplied to the US, a move intended to lower domestic energy prices in America ahead of elections.
India's Hard Line on Trade Terms
While diplomatic ties remain strong, India is not compromising on its economic interests. Sikri highlighted that New Delhi is monitoring all developments with extreme caution.
"We've said very clearly that we will not sign the trade deal until India gets preferential treatment," Sikri remarked, adding that the drafting of the deal and the actual granting of such treatment will be the most significant aspects of the ongoing discussions.
High-Level Diplomatic Calendar in Mumbai
The Ministry of External Affairs (MEA) has confirmed a packed schedule for External Affairs Minister (EAM) S Jaishankar in Mumbai on October 19-20. The EAM will host two major international counterparts:
- UAE Engagement: On October 19 and 20, EAM Jaishankar will host the Deputy Prime Minister and Foreign Minister of the UAE, His Highness Abdullah bin Zayed Al Nahyan. MEA spokesperson Randhir Jaiswal stated this visit will serve to review bilateral cooperation and discuss global matters, specifically the situation in West Asia.
- US Engagement: On October 20, the EAM will hold talks with US Secretary of State Marco Rubio. Additionally, Jaishankar will attend the celebrations marking the 250th anniversary of US independence as the Guest of Honour.