New Delhi/Washington– With a critical tariff deadline approaching, Indian and U.S. officials are locked in intense negotiations in Washington, D.C., as they push to finalize a long-awaited interim trade agreement within the next few days.
As part of the proposed deal, India is seeking greater market access for its labor-intensive sectors such as apparel, footwear, and leather goods—industries that are key job creators in the country. In return, the United States is pushing for reduced duties on its agricultural and dairy exports, officials familiar with the discussions said.
India’s trade delegation, led by Special Secretary Rajesh Agarwal, has extended its stay in the U.S., signaling a determined, last-minute push to bridge remaining gaps. Indian negotiators are emphasizing that broader tariff cuts—especially on products tied to high employment—are critical to reaching the larger goal of doubling bilateral trade to $500 billion by 2030.
The interim trade pact under discussion centers on reciprocal tariff reductions or eliminations. The negotiators are racing against a July 9 deadline, which marks the end of a 90-day pause declared by former U.S. President Donald Trump on imposing new tariffs on Indian goods. While the current effort focuses on a limited agreement, both sides are expected to continue negotiations in the months ahead with the aim of signing a more comprehensive trade pact by September or October.
As part of the deal, India is expected to seek expanded U.S. market access for competitive export sectors such as shrimp, fish, spices, coffee, and rubber—areas where Indian producers face stiff tariff barriers despite global competitiveness.
To help address the trade imbalance, India has already increased purchases of U.S. oil and natural gas, and has expressed willingness to further boost energy imports.
In a broader concession package, India has reportedly proposed slashing average tariffs from 13% to 4%, in exchange for exemptions from the U.S. tariffs imposed during the Trump era.
The outcome of the talks could mark a significant breakthrough in India-U.S. trade relations, potentially laying the groundwork for a broader and deeper economic partnership between the two democracies. (Source: IANS)
