The Indian delegation that went to the US for talks regarding the tariff and trade agreement has returned to India from Washington. A senior official informed that complete agreement has not yet been reached on some key issues in this round of talks, due to which the negotiation process will continue.
An important update has emerged regarding the ongoing trade deal between India and the US. The Indian negotiating team, which went to the US to discuss the interim trade agreement, has now returned to Delhi, but the talks are still incomplete. According to information, consensus has not been reached on several major issues, especially with respect to sensitive sectors like agriculture and automobiles, where differences persist between the two countries.
The Indian negotiating team was led by Rajesh Agrawal, a senior official from the Ministry of Commerce. The team was in Washington, USA from June 26 to July 2, where it attempted to finalize the trade deal with US officials, but several issues remain. Meanwhile, the US has demanded tariff concessions from India in some key sectors, on which India has not yet shown any leniency.
No agreement on agriculture and auto sectors
According to sources, the US wants India to provide relief in import duties on agricultural and dairy products, as well as in the auto sector, but India has refused to offer any concessions in these two sectors, considering them "strategically sensitive".
Indian officials say that giving any kind of concession in these sectors could prove detrimental to domestic industries. Therefore, India is currently not ready to compromise on these.
Deadline for Trump's tariff suspension is July 9
These talks are taking place at a time when the deadline for the suspension of reciprocal tariffs imposed by the US is expiring on July 9. This is why both countries want to reach a concrete conclusion before July 9. The US side is pressuring India to cut tariffs and present its market in a more open manner, especially for electric vehicles, wine, petrochemicals, and agricultural goods.
India raises US tariff issue in WTO
India has also registered its objection to the US tariffs at the international level. India has raised the issue in the Security Committee of the World Trade Organization (WTO) that the US has imposed a 25 percent duty on automobiles and their parts coming from India.
India has told the WTO that it reserves the right to impose retaliatory tariffs on some US products in response to this tariff policy of the US. This step by India is considered a major signal towards creating international pressure on the US's tariff policy.
What does India want to achieve from the US?
India has also put forward some important demands in the proposed deal. India wants the US to provide relief in tariffs on products like textiles, leather, gems and jewelry, readymade garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas. Industries related to these sectors are an important part of India's exports, and India wants tariff concessions on these to increase competition in the US market.
What are the demands of the US from India
On the other hand, the US also has a long list of demands. The US wants India to reduce tariffs on agricultural products like apples, almonds, genetically modified crops, wine, automobiles, electric vehicles, and some technology-based products. Along with this, the US is constantly seeking concessions from India regarding dairy products.
However, India has not yet indicated any concessions in the dairy sector. According to Indian officials, this sector is linked to rural employment and food security, and any concessions in this regard could affect the internal structure of the country.
Strict stance of the Indian team
After the Indian team returned from Washington, it became clear that India does not want to reach any hasty agreement under US pressure. A few days ago, former President Donald Trump claimed that India was going to make a huge tariff cut and open the market for the US. After this, there were also reports that India could close the deal within 48 hours.
But the current situation makes it clear that India has adopted a strict stance on these issues and has refused to fully accept the US demands.
Discussion on the possibility of a mini deal
Experts believe that if agreement cannot be reached on all issues, India and the US could consider a 'mini trade deal'. In such a deal, both countries would include those areas on which agreement has been reached, while the disputed areas would be kept out of the deal for the time being.
This will help both countries to send a message that progress is being made in trade negotiations, even if it takes some more time to finalize the entire deal.
