Wed Jul 02 03:17:38 UTC 2025: **Summary:**

India and the U.S. are engaged in intense negotiations for an interim trade agreement, with India seeking greater market access for its labour-intensive goods. The talks, which began on June 26, 2025, have been extended as the two sides work to finalize a deal before the July 9 deadline, when reciprocal tariffs imposed by the U.S. could be reinstated. India is demanding the removal of all U.S. tariffs on key sectors like textiles, leather, and gems & jewellery, while the U.S. is pushing for concessions in agriculture, dairy, and certain industrial goods. A think tank warns that failure to secure meaningful tariff relief for labour-intensive exports will make the deal politically untenable for India. The ultimate goal is to finalize a broader trade agreement by the fall of 2025, aiming to more than double bilateral trade between the two countries by 2030.

**News Article:**

**India, U.S. Trade Talks Reach Critical Point Amid Tariff Deadline**

*Washington D.C. -* High-stakes negotiations between India and the United States for an interim trade agreement have entered a crucial phase, with both sides facing a rapidly approaching deadline of July 9. At stake is the future of reciprocal tariffs imposed by the U.S., which could be reinstated if a deal is not reached.

The Indian delegation, led by Special Secretary Rajesh Agrawal, is pushing for greater market access for its labour-intensive sectors, including textiles, gems and jewellery, and leather goods. India seeks full tariff elimination on these goods, warning that the deal will be politically unviable at home without such concessions.

The U.S., meanwhile, is demanding duty concessions in agriculture and dairy, politically sensitive sectors for India due to the prevalence of sustenance farming and small landholdings. The U.S. is also seeking concessions on industrial goods, automobiles, and certain agricultural products.

“India’s demand is clear that the U.S. must remove all tariffs – both MFN and country-specific – on high and medium labour-intensive goods,” said a leading voice at Global Trade Research Initiative, adding that failure to do so would be seen as a lopsided and unacceptable deal.

These sectors employ millions, particularly in rural and semi-urban regions, and are crucial to India’s goals of job creation, MSME growth, and women’s economic participation.

If the interim trade pact is successful, it is expected to pave the way for a larger bilateral trade agreement, aiming to boost trade between India and the U.S. to $500 billion by 2030. Negotiators are hoping to finalize the first tranche of this comprehensive agreement by the fall.

Read More