Stories
Will US pressure tactics fail to force India into submission on trade deals?
- •America has repeatedly attempted to pressure India through tariffs, visa restrictions, and threats over Russian oil purchases.
- •Finance Minister Nirmala Sitharaman stated that the scope for further compromises in India-US trade deals is now extremely limited.
- •Despite the US suspending major Indian IT firms from the PERM program, Indian tech stocks surged following the decision.
- •India maintains that trade is not a one-way street and will make economic decisions strictly on its own terms.
Key Questions Answered
Amid ongoing tensions surrounding bilateral trade talks and disagreements over trade deficits and Russian oil purchases, the US government suspended several Indian IT giants, including TCS, Infosys, Wipro, HCL Tech, and Cognizant, from the PERM program on October 8, 2026.
Despite fears of a market downturn following the US visa restrictions, the Nifty IT index rose by nearly 3 percent in early trade on October 9, 2026, with major companies seeing strong share price surges. This resilience occurred because these firms operate globally, hire local employees, and acquire international companies rather than relying solely on sending Indian engineers to the US.
Finance Minister Nirmala Sitharaman stated on October 5, 2026, that further concessions are extremely difficult because trade must not be a one-way street where America demands disproportionate benefits under the guise of correcting trade deficits. Furthermore, India remains firm on purchasing oil from Russia despite American tariff threats and pressure tactics.
