A delegation from India’s Commerce Ministry is preparing to travel to Washington in the coming days to finalise key aspects of an interim trade agreement with the United States, as both nations work toward resolving tariff-related issues and moving closer to a broader bilateral trade deal.
According to ministry sources, the team’s visit—likely scheduled for next week—will focus on ironing out remaining disagreements in tariff negotiations across various sectors, particularly in sensitive areas such as agriculture and dairy. These sectors remain major sticking points, as they directly affect the livelihoods of Indian farmers and are politically sensitive domestically.
The upcoming visit follows US President Donald Trump’s recent announcement extending the deadline for implementing reciprocal tariffs on Indian goods from July 9 to August 1. Trump also remarked that a trade agreement with India was “coming soon,” raising expectations for a near-term breakthrough. During the visit, officials are expected to engage in discussions covering both the interim trade agreement and phase one of a broader Bilateral Trade Agreement (BTA). The final dates for the trip are currently being worked out, but it is expected to take place next week.
India’s chief negotiator, Rajesh Agrawal, had led the previous round of talks in Washington, during which significant progress was made in multiple sectors. Only a few unresolved issues remain, notably within the agriculture and automobile sectors. India has maintained its reluctance to provide concessions to the US in agriculture and dairy products, citing the potential impact on its rural economy and farming communities. Nevertheless, the forthcoming round of discussions is seen as crucial for finalising the pact—especially as the US has already imposed steep tariffs on imports from several other countries and had earlier proposed a 26 per cent reciprocal tariff on Indian goods.
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Commerce and Industry Minister Piyush Goyal recently reinforced India’s stance, stating that the country does not enter trade deals based on arbitrary deadlines. He asserted that India would only sign a trade agreement when it is fully negotiated, properly concluded, and aligned with national interests. “Free Trade Agreements (FTAs) must offer mutual benefit to both parties,” Goyal said last week, underscoring the importance of a win-win framework in any trade deal with the US.
While the U.S. is pressing for duty reductions on a range of items—including industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, and agricultural commodities like dairy items, apples, tree nuts, and genetically modified crops—India is seeking concessions for its labour-intensive sectors.
These include industries that are vital to India's exports and job creation, such as textiles, gems and jewellery, leather goods, clothing, plastics, chemicals, prawns, oil seeds, grapes and bananas. Expectations are still high that the forthcoming visit could lead to a breakthrough and open the door for a fair and advantageous trade agreement between the two countries as both parties get ready for another round of negotiations.
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