India and the U.S. have extended trade negotiations aiming for an interim deal on tariff reductions in agriculture and automotive sectors until July 9.
Trade negotiations between India and the United States, focused on reducing tariffs in the agriculture and automotive sectors, have been postponed to next week. Both nations are seeking to finalize an interim agreement ahead of the July 9 deadline to strengthen their trade relations.
Extension of Talks into Next Week
Trade discussions between India and the United States aiming for an interim agreement have been extended into next week. Indian government sources confirmed that both parties are working toward a final consensus on tariff reductions in the agriculture and automotive sectors before the July 9 deadline.
Two-Day U.S. Delegation Talks in New Delhi
A senior delegation from the Office of the United States Trade Representative (USTR) conducted two days of intensive negotiations in New Delhi with Indian trade officials, led by chief negotiator Rajesh Agrawal. The discussions aimed to facilitate market access, reduce tariff and non-tariff barriers, and strengthen supply chain integration and economic cooperation.
Focus on Expanding Market Access and Reducing Tariffs
An Indian official familiar with the talks stated, “Both countries are engaged in focused discussions to expand market access, reduce tariff and non-tariff barriers, and enhance supply chain integration.” Although initially planned to conclude by the end of the week, the talks have been rescheduled for Monday and Tuesday next week to resolve outstanding differences.
Trade Agreement Goals and July 9 Deadline
These negotiations are part of efforts agreed upon by Presidents Donald Trump and Narendra Modi in February this year. The main goal is to increase bilateral trade volume to $500 billion by 2030. Under this interim agreement, the Trump administration may revoke the 26% reciprocal tariffs imposed on Indian goods—tariffs that have been temporarily suspended for 90 days alongside similar measures for several other U.S. trading partners.
Exporters’ Concerns and Impact on Shipments
Another Indian official added, “Many exporters to the U.S. have delayed shipments over the past two weeks due to concerns about whether cargos would arrive before the July 9 deadline.”
Growth in India’s Exports to the U.S.
U.S. government data shows that India’s exports to the U.S. from January to April this year rose by nearly 28% year-on-year to $37.7 billion. This increase was driven by accelerated shipments ahead of tariff hikes in April. Meanwhile, imports from the U.S. reached $14.4 billion, widening India’s trade surplus.
Approval for Starlink’s Commercial Operations in India
In parallel with these negotiations, India has approved a license for Elon Musk’s Starlink to commence commercial operations. This move comes despite Musk’s public disagreements with President Trump.
India’s Opposition to Opening Agricultural Markets
India continues to oppose U.S. demands to open its agricultural and dairy markets. An Indian official cited the impact on millions of poor farmers who cannot compete with heavily subsidized American products as the primary reason.
Threat to Pursue WTO Complaint
Furthermore, Indian officials have made clear that New Delhi is prepared to pursue its complaint at the World Trade Organization against U.S. tariff hikes on steel and aluminum, while simultaneously seeking to reach a bilateral agreement.
Outlook for Negotiations and Future Trade Relations
These negotiations reflect a serious effort to improve economic relations between the two countries and expand trade cooperation, even as the deadline for a final agreement rapidly approaches.
