The next round of negotiations for the proposed India-US bilateral trade agreement (BTA) is set to face delays, with an American delegation likely to defer its scheduled visit to New Delhi later this month.
Talks for the pact have already gone through five rounds, and the sixth was planned from August 25 to 29. “This visit is likely to be rescheduled,” the official said, requesting anonymity.
The deferment comes at a time when Washington has imposed fresh trade penalties on India.
A 25 per cent duty on Indian goods has been in place since August 7, and an additional 25 per cent levy, announced as a penalty for India’s crude oil and military equipment purchases from Russia, is set to take effect from August 27. Together, the duties will push tariffs on Indian exports to the United States to 50 per cent.
Washington has also been pressing New Delhi to open politically sensitive sectors such as agriculture and dairy. India has categorically ruled out concessions, insisting such moves would endanger the livelihoods of small farmers and cattle rearers.
Despite mounting tensions, bilateral trade between the two nations has continued to grow. Commerce ministry data shows India’s exports to the US rose 21.64 per cent to USD 33.53 billion, while imports grew 12.33 per cent to USD 17.41 billion during April-July 2025.
America remained India’s largest trading partner in the period, with bilateral trade reaching USD 12.56 billion.
Both sides have committed to concluding the first phase of the BTA by the autumn of 2025 and aim to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
Following US President Donald Trump’s announcement of an additional 25 per cent tariff on Indian exports, Prime Minister Narendra Modi used his Independence Day speech to urge a greater shift towards ‘swadeshi’ (Made in India) products while expressing solidarity with farmers and fishermen.
“Modi is standing like a wall against any harmful policy related to the farmers, fishermen and cattle-rearers of India. We will never accept any compromise regarding our farmers, their livestock rearers and fishermen,” PM Modi said.
Meanwhile, in a separate development, Trump held a crucial discussion on the Ukraine conflict with Russian President Vladimir Putin in Alaska on Saturday (India time), raising hopes that improved US-Russia ties could soften the additional 25 per cent tariff on India.
Just days earlier, Trump had taken a hard line against Moscow. However, following his talks with Putin, he signalled a more cautious approach. “I might have to consider it (sanctions) in two or three weeks, but there’s no immediate need. If I did secondary sanctions now, that would be devastating for them,” he said.
Follow us
