Mon Jun 30 10:51:08 UTC 2025: **Summary:**

India and the U.S. are in critical negotiations for an interim trade agreement, aiming to avoid the re-implementation of 26% reciprocal tariffs by July 9th. India is reportedly taking a firm stance, particularly on agricultural issues, where it is hesitant to offer concessions due to the sensitivity surrounding small-scale farmers. The U.S. is seeking duty reductions on agriculture, dairy and industrial products, while India wants concessions on textiles, gems, and other labour-intensive goods. The goal is to finalize the interim deal soon, with the larger aim of increasing bilateral trade to $500 billion by 2030.

**News Article:**

**India Digs in Heels on Agriculture in Crucial Trade Talks with U.S.**

*New Delhi -* Negotiations between India and the United States over an interim trade agreement have reached a critical juncture, with India taking a firm stance on agricultural issues, according to sources familiar with the talks. With a deadline of July 9th looming for the re-implementation of a 26% reciprocal tariff (suspended since April), pressure is mounting to reach a deal.

The Indian delegation, led by Special Secretary Rajesh Agrawal, remains in Washington as negotiations continue. The U.S. is seeking duty concessions in key sectors, including agriculture and dairy, areas that are politically sensitive for India due to the dominance of small-scale farmers.

“These segments are difficult and challenging areas for India to give duty concessions to the U.S. as Indian farmers are into sustenance farming and have small land holdings. Therefore, these sectors are politically very sensitive.”

While the U.S. seeks concessions on industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops, India is pushing for duty reductions on labor-intensive sectors such as textiles, gems and jewellery, and leather goods.

The talks aim to finalize an interim agreement that could pave the way for a broader bilateral trade agreement, with the ultimate goal of increasing bilateral trade to $500 billion by 2030. India’s merchandise exports to the U.S. rose by 21.78% in April-May, while imports increased by 25.8%. Failure to reach an agreement by July 9th would see the 26% reciprocal tariffs reinstated, potentially disrupting trade flows between the two nations.

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