Negotiations for a mini-trade deal between India and the United States have reached their final stages, with an official agreement expected within the next 24 hours.
A limited trade agreement between India and the US is likely to be announced in the coming hours. Officials from both countries have been discussing this mini-trade deal for some time, but India has made it clear that some sensitive sectors will not be included in the agreement. Specifically, sectors like agriculture and dairy, where India's position has been clear from the outset.
India Doesn't Want an Agreement on Agriculture and Dairy
According to sources, the Indian government has stated that issues like agriculture and dairy are very sensitive and should be kept out of this deal. In these sectors, millions of Indian farmers come from small and marginal backgrounds, who could be affected by any major foreign intervention. Therefore, India has postponed discussions on these sectors for now.
Experts say this decision was taken after careful consideration because if the US gains access to agricultural and dairy products in India, it could significantly impact Indian farmers. US dairy products have lower costs and are also technologically more advanced, which could drive domestic producers out of the market.
The Deal Will Be Limited to Trade in Goods Only
The proposed agreement will be limited to trade in goods only. This means that issues like services, investment, or digital trade will not be included. Officials are indicating that this will be a first step, after which there may be scope for discussion in other areas.
India is trying to provide its domestic industries with greater access to the US market under this deal. Priority is being given to textiles, electronics, and auto parts. India's production capacity in these sectors is considered quite good, and they can present themselves competitively in the US market.
US Demands
On the other hand, the US wants to be allowed to sell genetically modified (GM) crops, animal feed, and dairy products in India. The US is emphasizing that India should not be hesitant to open its market and should be transparent about agricultural products.
However, India does not fully agree with these demands. India's objection is that GM crops could be a risk for the country's small farmers. India still has a large population dependent on agriculture, with limited resources. The arrival of GM seeds could put pressure on traditional farming and force farmers to depend on corporate companies.
Trump's Threat and the July 9 Deadline
In this whole matter, pressure has also been continuously exerted by US President Donald Trump. Trump has already said that countries that do not reach an agreement with the US by the July 9 deadline will face higher tariffs. Letters will be sent to such countries from the US stating the new tariff rates.
This deadline is important for India because in April, the US imposed duties of up to 26 percent on some Indian products. This has now been temporarily suspended, but if no agreement is reached, these duties could be reimposed. This could cause heavy losses to Indian exporters.
Industry Will Monitor the Impact of the Deal
If this mini-trade deal between India and the US is finalized on time, its impact on trade between the two countries will be visible. The Indian industry is keeping an eye on which sectors will be included in it and what kind of tax benefits will be available.
Businesses in textiles, electronics, auto parts, and the pharma sector are seeing it as an opportunity. These sectors hope that gaining access to the US market could boost their exports.
Ongoing Discussions, Agreement in Final Stage
According to sources, the discussions between India and the US have now reached their final stages. Both sides want to finalize it as soon as possible so that a concrete result can be achieved before the July 9 deadline.
Although agreement on some points is still pending, the discussions have gained momentum. Officials from both countries are in constant contact, and it is expected that an official announcement will be made soon.
A Step Towards a New Direction in International Trade
This proposed deal, although limited, is being seen as the beginning of a new chapter in India-US trade relations. The special thing is that India is trying to move forward on its own terms and is sending the message that it will not make any decisions under pressure.
Now it remains to be seen on which issues agreement is reached at the last moment and which sectors will benefit from this deal. India has made it clear that it is only about trade, not self-respect.
