SBI Report Advises India to Resist US Trade Concessions

A research report released July 10, 2026, by State Bank of India (SBI) Ecowrap advises the Government of India to remain patient and avoid early concessions in trade negotiations with the United States. The report asserts that the Donald Trump administration is utilizing strategic uncertainty and issue-linking across diverse fronts—including NATO, Iran, China, and Greenland—as bargaining tools to maximize leverage.

SBI recommends that India leverage its strategic advantages, such as its technology workforce, pharmaceutical capabilities, and status as an Indo-Pacific counterweight, rather than yielding to pressure. The proposed strategy involves offering limited, reversible proposals and waiting for US demands to encounter market costs and alliance fatigue. This approach aims to wear down the US opening position while preserving the overall bilateral relationship.

Dr. Soumya Kanti Ghosh, SBI's Group Chief Economic Adviser, argues that India should test the resolve of the US administration to strengthen its long-term bargaining position, even if it entails high short-term costs. The report warns that the US practice of bundling trade, defense, and security issues may ultimately erode long-term trust among its global allies.