The negotiations are part of the broader effort to finalise a bilateral trade agreement (BTA), for which both countries had agreed on the Terms of Reference (ToR) in March.
The fifth round of trade negotiations between India and the United States concluded without a breakthrough, with the US making fresh demands for greater market access in the final hours of talks. Despite the impasse, India remains optimistic about securing an interim trade agreement before the August 1 deadline. Indian negotiators, who held the latest round of discussions in Washington last week, are expected to return to New Delhi later this week.
For the next round of talks, the US team will visit India in August, an official familiar with the matter said.
The negotiations are part of the broader effort to finalise a bilateral trade agreement (BTA), for which both countries had agreed on the Terms of Reference (ToR) in March.
The fifth round was led by India’s Special Secretary in the Department of Commerce Rajesh Agrawal and Assistant US Trade Representative for South and Central Asia Brendan Lynch. Key issues discussed included agriculture, automobiles, treatment of non-market economies, and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies), reports PTI.
The interim deal is being pursued ahead of the expiration of the suspension of Trump-era tariffs.
On April 2, 2025, US President Donald Trump had announced high reciprocal tariffs, which were temporarily suspended -first until July 9 and then extended to August 1- while trade negotiations with several countries, including India, were underway.
India has firmly resisted US demands for tariff concessions on agricultural and dairy products. “So far, New Delhi has not granted such concessions to any of its FTA partners in the dairy sector,” the official said. Farmer groups in India have also urged the government to exclude agriculture-related matters from the deal.
India is pushing for the removal of additional 26% tariffs and easing of duties on steel (50%), aluminium, and automobiles (25%). It is also seeking tariff concessions for labour-intensive sectors such as textiles, leather, gems and jewellery, plastics, and agricultural goods like bananas and oilseeds.
Meanwhile, the US is seeking reduced tariffs on industrial goods, electric vehicles, wines, petrochemicals, dairy, apples, tree nuts, and genetically modified crops.