India-US Interim Trade Deal Likely Within 48 Hours Amid Intense Last-Minute Talks
GG News Bureau
New Delhi/Washington, 3rd July: India and the United States are likely to finalise an interim trade agreement within the next 48 hours, sources told NDTV on Thursday, as negotiations in Washington entered their final phase ahead of the July 9 tariff deadline.
The Indian delegation extended its stay in the US capital to resolve lingering disagreements, with both sides determined to reach consensus before a pause on US tariffs—granted earlier—is lifted.
One of the major sticking points remains Washington’s insistence on greater Indian market access for genetically modified (GM) crops. New Delhi, however, continues to resist the demand, citing the potential impact on small farmers and long-standing concerns over food security.
Similarly, US negotiators are pushing for entry into India’s agricultural and dairy markets—two sensitive sectors that are likely to be excluded from the interim deal, sources told NDTV Profit. The Indian government has reportedly argued that any such move would endanger rural livelihoods and compromise domestic food safety standards.
Instead, the two nations are focusing the proposed deal on reciprocal tariff reductions, especially on goods critical to India’s employment and export base. Indian officials are lobbying for lower US tariffs on footwear, textiles, and leather products—labour-intensive sectors key to job creation and export growth.
India is reluctant to sign a deal that lacks meaningful tariff concessions. Negotiators believe that unless access is granted to Indian exporters in these categories, the goal of doubling bilateral trade to $500 billion by 2030 will remain out of reach.
“Our estimate is that once the Interim India-US Trade Deal is finalised, Indian exports to the US will double within the next three years,” said Ajay Sahai, CEO of the Federation of Indian Export Organisations (FIEO), in a statement to NDTV.
Officials from both countries have reportedly agreed to focus on reducing overall duty barriers rather than attempting to resolve broader structural trade issues at this stage.
The next 48 hours are seen as crucial, with negotiators expected to announce the terms of the agreement before the July 9 deadline.
