NEW DELHI: Indian negotiators currently in the US for last-minute talks to finalise an interim trade deal on Monday extended their stay by three more days, raising hopes of a deal before the July 9 deadline when the Trump tariffs will kick in if there is no pact.
A commerce ministry official said the Indian team would stay till July 1. The negotiators were originally scheduled to stay for two days — June 26 and 27. The Indian team is headed by Rajesh Agrawal, special secretary, Department of Commerce.
Last week, US President Donald Trump had hinted at the possibility of a big trade agreement with India. “We are having some great deals. We have one coming up, maybe with India, a very big one, where we’re going to open up India,” Trump had said during an event at the White House last Thursday.
India’s trade officials had earlier said they were “not desperate” for a deal before July 9 at the cost of India’s interests, the extended parleys suggest a deal is likely to be sealed.
The US has already decided not to levy a 26% import tariff on Indian goods till July 8.
If both the countries failed to finalise an interim deal by that date, then Indian goods exported to the US would attract a higher tariff than the existing 10%.
American authorities have already said that the July 9 deadline would not be extended.
The US is seeking tariff concessions from India on a range of products, including industrial goods, automobiles — particularly electric vehicles — wines, petrochemical products, dairy items, and agricultural products such as apples, tree nuts, and genetically modified crops.
In return, India is pushing for duty reductions on its labour-intensive exports, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
Commerce ministry sources have hinted at a multiple-phase negotiation before a long-lasting trade deal is finalised. However, for now, an interim deal is being looked at to avoid the reciprocal tariff of 26%.
The first tranche of Bilateral Trade Agreement between the two countries is expected to be finalised by September- October 2025.
Agri, dairy are sticking points
According to sources, agriculture and dairy remain the most contentious issues. India would have liked to side-step these and signed an early deal, but the US side is not ready for it
