The Indian team of officials from the Ministry of Commerce and Industry have returned from Washington after concluding the fifth round of talks with the US team for the proposed bilateral trade agreement (BTA), an official of the Indian government informed media.
The negotiations were held for four days, from July 14 to July 17, 2025.
India’s chief negotiator and special secretary in the department of commerce, Rajesh Agrawal, had lead the team for the deliberations that have been ongoing since May this year after US President Donald Trump announced sweeping tariffs on most countries including India in his April 2 ‘Liberation Day’ speech.
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Both India and the US are now looking to finalise a mini-trade deal before the latest August 1 deadline, which marks the end of the suspension period of the 26 per cent additional tariffs on India.
Issues related to agriculture and automobiles are learnt to have figured during the fifth round of negotiations, besides matters related to ways to deal with non-market economies, and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies).
India has not opened its agriculture and dairy markets to any country in any free trade agreement so far, and has hardened its stance in the ongoing discussions with the US as well when it comes to the US’s demand for duty concessions on agri and dairy products.
Certain farmers’ associations have also urged the government not to include any issues related to agriculture in the trade pact.
While India is seeking the removal of the additional 26 per cent tariffs, Trump hinted some days ago that an Indonesia-type deal may be in the pipeline with India. The US-Indonesia deal finalised last week set US tariffs to 19 per cent, but also includes Indonesia’s commitment to open its market to the US.
India is also seeking the easing of 50 per cent tariffs on steel and aluminium and 25 per cent tariffs on auto sectors. Against these, India has reserved its right under the WTO (World Trade Organisation) norms to impose retaliatory duties.
The country is also seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.
On the other hand, the US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, dairy items, apples, tree nuts, and genetically modified crops.
The two countries are hoping to conclude talks for the first tranche of the proposed BTA by fall (September-October) this year.
India's merchandise exports to the US rose 22.8 per cent to USD 25.51 billion in April-June quarter this fiscal year, while imports rose 11.68 per cent to USD 12.86 billion.
The high reciprocal tariffs declared by Trump in April were first suspended for 90 days until July 9, and later till August 1 as America is negotiating trade deals with a number of countries. India continues to pay the 10 per cent baseline tariffs through this period.
Also Read: Will have Indonesia type trade deal with India, says Trump
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