India-US Trade Deal: Very important progress has been made in the ongoing trade deal negotiations between India and America and a deal can be made between the two countries soon. According to NDTV report, despite the India-European Union (EU) Free Trade Agreement reaching the final stage at the political level, talks with the US continued.

Government sources rejected speculation that the India-EU agreement was part of a bargaining strategy with the US. Sources say that America was not mentioned even once in the limited meetings of India-EU on the last day. According to the government, the EU agreement was put forward on its own independent timeline and in its own commercial interests, and not as a response to parallel negotiations with the US.

Government has full eye on American market also

The government also clarified that a completely cautious approach has been adopted regarding America also. According to sources, the US market is at least equally important, but in many cases even more so. A source said that even during the crucial phase of India-EU talks, Indian trade negotiators were in constant touch with their American counterparts. Talks are still ongoing and India is optimistic about a positive outcome.

Impact of changes in the global trade system

Sources linked India’s trade strategy to the increasing fragmentation of the global trading system. He said that the MFN based WTO system is currently under pressure, hence countries are now giving priority to bilateral and multilateral agreements with big partners. India’s strategy is aimed at ensuring access to larger markets, stability and predictable rules for exporters and investors, and not at treating one agreement as a substitute for another.

India does not consider EU and US exports as competitors

Government sources stressed that India does not consider exports to the EU and the US as competing goals of each other. The priority of the government is to increase exports in both the markets, which will strengthen employment and investment in the country. Describing EU as the world’s largest import market, sources said that the India-EU agreement is an example of how India wants to move forward with big markets. Although the sources did not disclose about the India-US trade agreement, they said that the talks are ongoing. According to him, the possibility of a compromise in future has increased.

Trying to reassure the industry

The public signal of the government is also for the industry. According to sources, an attempt is being made to convey that the EU agreement is not a geopolitical strategy to get ahead of each other and talks with America are also in the final stages. The government emphasizes that India’s trade policy is being determined not by strategic signals but by concrete business outcomes such as market access, stable regulations and supply chain integration.

India and America have now reached the lowest level of several decades. India does not seem to get relief from the tariff imposed by US President Donald Trump. According to sources, on Saturday (August 16, 2025), India suffered a major setback when the US postponed the sixth round of the proposed bilateral trade agreement. This meeting was to be held in Delhi from 25 to 29 August. An American official said that the visit would probably be rescheduled later.

Sixth round postponed, shock to India
So far, five rounds of talks have been held between India and America regarding the trade deal. The sixth round of meeting was considered important, but due to its postponement, difficulties have increased for India. This delay will directly affect the tariff as the additional 25 percent penalty tariff i.e. 50 percent fees imposed by the US are going to be implemented from August 27.

American pressure on agriculture and dairy
The US wants it to get more markets in India’s agriculture and dairy sector. But India has made it clear that the interests of farmers will not be compromised. India is an agricultural country and if the American market interferes with the Indian agriculture sector, it will have a big impact on the farmers and the economy.

Future of trade
India and America have been a long time trade partner. The two countries have targeted that the first phase of bilateral trade deal will be completed by September-October 2025. Also, the plan is to increase bilateral trade by $ 500 billion by 2030. Currently, about $ 191 billion is being traded between the two countries.

Tariff’s effect
The US has imposed 25 percent tariff on India since August 7. Apart from this, due to purchasing crude oil and military equipment from Russia, an additional 25 percent punitive tariff has also been imposed on India, which will be applicable from August 27. This will affect both India’s exports and imports.

Indo-US business figures
According to the latest Commerce Ministry data, India’s exports to the US rose by 21.64% to $ 33.53 billion between April-July 2025. At the same time, imports from the US rose 12.33% to $ 17.41 billion during this period. During this period, America remained India’s largest trading partner.

Amidst the ongoing tariff controversy between India and the US, the Ministry of External Affairs has dismissed some fake news spreading on social media. The fact check unit of the ministry posted on ‘X’ and clarified that India is not reviewing the exempted things and no such plan is being made that any step will be taken in this direction in response to the 25 percent fee levied by Trump.

Reports of review of Indo-US agreements are also wrong
In another post, the fact check unit of the Ministry of External Affairs also termed the report as fake, claiming that India is reviewing its bilateral agreements with the US and considering suspending them if America’s “hostile economic policies” continue.

After 25% tariff of Trump, both countries are trying to trade agreement
According to the report of Hindustan Times, sources said that in response to 25 percent tariffs, both India and America are making serious efforts to create a profitable business agreement with mutual consent. A source said, “We are currently talking through virtual mode and the rest of the issues will be resolved during the US team’s visit to India this month.”

US team will reach New Delhi on August 24
America’s business talks team is coming to New Delhi to discuss the sixth round on August 24. During this time, emphasis will be laid on advancing the ongoing trade talks between the two countries.

This is Fake News!#Mefactcheck https://t.co/3dyvvvcoyta

– Mea Factcheck (@Mefactcheck) August 3, 2025

Trump imposed 25% tariff on India, resentment over relations with Russia
Last week, US President Donald Trump announced on ‘Truth Social’ and implemented 25 percent tariff on India. This tariff has come under effect since August 1. Along with this, an additional fine has also been imposed, due to which India is said to have purchased oil and military equipment from Russia, while the Ukraine War is still going on.

Trump’s sharp attack on India
In a post, Trump wrote, ‘Remember, even though India is our friend, but we have done very little business with them for years, because their tariffs are the highest in the world and their non-economic trade barriers are the most complex and painful.’ The next day, in another post, Trump attacked India and Russia directly and said that the two countries should ‘sink together with their dead economies’.

India usa trade deal: The long -running bilateral trade talks between India and the US have now reached a decisive turn. While the US wants India to give concession in import duty on dairy and agricultural products. At the same time, India has refused to do so. All this is happening at a time when both countries are trying to finalize an interim trade agreement. This agreement can later be the basis of a comprehensive bilateral trade agreement (BTA). The dialogue has been going on in Washington since the end of June and is now the sixth day, but no concrete consent has been announced yet.

India told the dairy sector ‘red line’
According to the top sources of the Government of India, India has dismissed the demand for giving discount in tariffs on dairy products by the US. More than 8 crore people get employment in India from this region, most of which are small farmers. A senior official said bluntly, “There is no question of giving any concession on dairy. This is our red line.” The government believes that exemption in sensitive areas like agriculture and dairy can be disastrous for India’s rural economy.

Rajesh Aggarwal’s journey increased, Jaishankar also gathered in efforts
Rajesh Aggarwal, Special Secretary, Ministry of Commerce, who is leading the Indian delegation, has extended his journey in Washington one more day with the aim of removing the deadlock. The talks started from 26 June and now have entered the sixth day on Tuesday. The talks are likely to continue on Wednesday.

Meanwhile, External Affairs Minister S.K. Jaishankar is also in the US and is about to meet his American counterpart Marco Rubio during a diplomatic meeting. This meeting is also considered important towards breaking the deadlock in business talks.

India’s priorities- tariff concession in labor-dominated areas
There is a demand from India that the US should give exemption in import duty on labor-dominated areas such as textiles, costumes, gems and leather, plastic, chemicals, shrimp, oilseeds, grapes and bananas. According to government sources, “The concession on these products is not a threat to the domestic interests of America, so the possibility of opposition is also very low.” India believes that exemption in these areas will provide relief to its exporters and domestic employment will also be encouraged. The purpose of this interim agreement is to eliminate heavy duty (up to 26%) on Indian exports. The US wants to fulfill this agreement before the deadline of July 9.

Tariff Deadline and American Pressure
If the dialogue fails, the US can again apply tariffs up to 26%. According to PTI, an official said, “If the business talks fail, the 26 percent fee will be again impact.” The mutual fees imposed on Indian products on April 2 were suspended for 90 days. But the original tariff of 10% is still applicable. India wants permanent exemption from these additional charges so that exports do not be interrupted.

America’s demands and India’s challenge
America is demanding concession on dairy and agricultural products from India. These include industrial items, electric vehicles, wine, petrochemical products, apples, dry fruits (tree nuts), and gene-reflected crops. But it is difficult for India to accept all this, because most farmers of the country are dependent on traditional and marginal farming and any kind of external competition will directly affect them.

A target of $ 500 billion by 2030
India and the US want to finalize the first phase of their proposed bilateral trade agreement (BTA) by September-October this year. Its goal is to reach bilateral trade by 2030 to $ 500 billion. Currently, this trade is around $ 191 billion.

However, if there is no compromise on disputed topics like agriculture and dairy, then this goal can be difficult. India says that it will not accept any foreign pressure at the cost of its farmers and rural economy.