India-US Interim Trade Deal Expected Within Two Days: Govt Sources

Government sources have indicated that India and the US are close to signing an interim trade deal within the next two days, with negotiations in the final stages. While India insists on protecting farmers’ interests, limited market access may be allowed for certain US products like pecan nuts, walnuts, almonds, and Washington apples.

Indian officials are pushing for better access for labor-intensive sectors, while the US is pressing for removal of tariff barriers on dairy and agricultural products. India remains firm on safeguarding its dairy and agriculture sectors, considered "big red lines" in talks.

The trade delegation, led by Chief Negotiator Rajesh Agrawal, is currently in the US to speed up discussions. The deal aims to avoid the reinstatement of reciprocal tariffs, paused earlier this year, by July 9. If no agreement is reached, tariffs could revert to higher levels, though India would still retain a relative advantage compared to other manufacturing nations.

Previous talks in New Delhi focused on market access, sanitary and phytosanitary measures, technical barriers to trade, digital trade, customs facilitation, and legal frameworks. Both sides have made progress and aim to conclude the first tranche of the broader bilateral trade agreement (BTA) soon.

Commerce and Industry Minister Piyush Goyal stated both countries intend to provide preferential market access and continue resolving issues like aluminum and steel tariffs. India also seeks reductions in Basic Customs Duty on labor-intensive exports such as leather.

The ultimate goal is to double bilateral trade to $500 billion by October 2025 through a multi-sector trade pact.