India is racing against time to secure a trade deal with the United States before the 9 July deadline. This is when a 90-day pause on reciprocal tariffs expires.
Foreign Minister S. Jaishankar expressed optimism, stating that negotiations are progressing and that India hopes to finalise an agreement before the deadline.
The talks began before President Donald Trump’s 2 April tariff announcement, which imposed up to 27% duties on Indian goods.
India has already lowered tariffs on select U.S. imports, including Bourbon whiskey and motorcycles, but remains firm on protecting the agriculture and dairy sectors.
A U.S. delegation recently met with Indian trade officials in Delhi, discussing market access, tariff reductions, and digital trade.
While progress has been made, India resists U.S. demands to open its markets to wheat, dairy, and corn imports, citing domestic concerns.
The stakes are high — if no deal is reached, India faces a 26% tariff on key exports, including rice, shrimp, textiles, and footwear, which could hurt foreign investment.
India is pushing for tariff exemptions and pledges to increase American goods purchases, including energy products and defence equipment.
With time running out, both nations are working toward an interim trade agreement. This could set the stage for a broader deal in the U.S. autumn.
Investors are watching closely as India and the U.S. navigate complex trade negotiations that could reshape bilateral commerce for years to come.
