India-US trade deal: With Indian officials extending their stay in the US, the trade deal between the two countries may be finalised as early as this week. The provisional agreement, amongst the first with a major US trade partner, would serve as a preliminary step towards establishing a comprehensive trade partnership between Washington and New Delhi.According to a Financial Times report quoted by ET, the interim India-US trade deal is likely to be announced this week. The negotiations have reached a critical phase, with New Delhi maintaining firm boundaries regarding market access in agriculture, genetically modified (GM) crops, and dairy sectors, according to sources close to the discussions, according to the report.
India-US Trade Deal: Agriculture Market Access A Key Hurdle
Reports indicate that efforts are underway to secure the agreement before July 9, when 26% reciprocal tariffs become effective. A source was quoted as saying, “We are hopeful of a deal…But there would be no compromise on the interests of Indian farmers.”Another source emphasised, “India’s stance in these areas is very clear,” adding, “There are red lines that will not be crossed”.Indian trade representatives have extended their Washington visit beyond the planned two-day schedule ending June 27, as discussions with US officials continue.“Negotiations have reached a crucial stage,” noted a third source to Financial Times, indicating that the agreement might be implemented in several stages, with certain aspects to be finalised subsequently.Trump announced on April 2 a reciprocal 26% duty on Indian goods imports as part of the administration’s trade measures affecting numerous countries. These duties were suspended for 90 days until July 9. Nevertheless, the fundamental 10% duty will remain active even if the ..The US seeks market access for GM crops and cattle feed in India, which presents a delicate situation for New Delhi. These areas pose significant challenges for India, considering its agricultural landscape dominated by small-scale farmers practising subsistence farming. The US administration remains firm on maintaining the baseline 10% tariff. “There are certain non-negotiables for India which it has told the US,” stated an official.The commerce and industry ministry has informed local exporters and industry representatives about ongoing discussions to conclude the initial phase, with subsequent phases to follow.
