India–US “Mini” Trade Deal Nearing Completion with Key Agriculture & Dairy Provisions

India and the United States are on the verge of finalizing an interim "mini" trade agreement after intense negotiations aimed at stabilizing trade ties. Under this deal, upcoming tariff adjustments are expected—but with major provisions excluded from scope.

While the plan retains a base 10% import tariff on Indian exports imposed by the US in April, it proposes rolling back the extra 26% levy across multiple product categories. In return, India has agreed to selectively open its market to certain American agricultural and dairy commodities not widely produced domestically.

Key negotiating points have centered on protecting sensitive sectors: agriculture and dairy remain India’s “big red lines” during these discussions. To balance trade, both sides also explored concessions in areas like automobiles, nuts, natural gas, and textiles.A high-level Indian delegation led by Chief Negotiator Rajesh Aggarwal has been in Washington to finalize the agreement before the US deadline of August 1. While this “Phase 1” deal may exclude GM crops or broader agri-access, it paves the way for a larger free-trade pact expected by autumn—part of a joint objective to double bilateral trade to $500 billion by 2030.