India has set its limits on major issues in areas like agriculture and dairy for the proposed interim trade agreement with the US. So now Washington is in the hands of finalizing the deal.

Sources said that if the issues are resolved, the interim trade agreement can be announced before July 9. The 90-day fee for dozens of countries including India on behalf of US President Donald Trump is also ending on this day. He said that India has set its boundaries and now the ball is in America’s court.

Trying to finalize interim trade agreement

The two countries had announced to start negotiations for bilateral trade agreement (BTA) in February. He decided to complete the first phase of BTA by this year’s autumn (September-October). Before that, both sides are trying to finalize the interim trade agreement.

On April 2, the US imposed an additional 26 percent counter -counter duty on Indian goods, but postponed it for 90 days. However, 10 percent of the original fee levied by the US is still applicable. India wants a complete discount from this 26 percent fee. A source said, “If the proposed trade talks fail, then 26 percent fees will be implemented again.”

India does not trade agreement on the basis of time limit

Commerce Minister Piyush Goyal said last week that India does not compromise on a deadline basis and will accept the proposed trade agreement with the US only when it is in national interest. According to sources, the FTA is possible only when both sides get benefits and it should be a profitable agreement for both sides.

Only last week, the Indian party has returned from Washington after talking on the interim trade agreement with the US. There are also differences between the two countries at steel and aluminum (50 percent), vehicle (25 percent) fees.

India is also adopting a tough stand

India has tightened its stand on giving fees concessions to the US on agriculture and dairy products, because both are sensitive subjects. India has never opened the dairy sector in any trade agreement signed before.

Trump said last week that his administration is sending letters to the first group of 10-12 countries, in which the details of the counter-duty rates will be shared and the entire process can be completed by 9 July.

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The Indian party has returned from Washington after negotiating the interim trade agreement with the US. Giving this information, an official said that the agreement is likely to be finalized before July 9, but some issues in agriculture and vehicle sectors still need to be resolved, so the discussion will continue.

The Indian party is being led by the chief negotiator Rajesh Aggarwal. He is a special secretary in the Department of Commerce. The official said the talks are in the final stages and its conclusion is expected to be announced before 9 July, which is the last day of the 90-day suspension of the US President Donald Trump’s counter-duty in the 90-day suspension.

25 percent fee in vehicle sector

The official said, ‘The Indian team is back from Washington, the talks will continue. There are some issues in agriculture and vehicle areas, which need to be resolved. India has raised the issue on 25 percent fee in the vehicle sector. It has taken up the matter in the Security Committee of the World Trade Organization (WTO).

India has also told the WTO that it has reserved the right to reply on selected American products in response to the US fee on steel and aluminum.

India’s talk with different countries

Union Minister Piyush Goyal said on the trade agreement with the US, ‘India discusses its terms, discussion with different countries, whether it is European Union, New Zealand, Oman, Oman, America, Chile or Peru. Agreement is going on with many countries of India. Free trade agreement is only when there is two -way profit and when the deal is done keeping India’s interests safe, keeping in mind that the national interest will always be the highest.

The Union Minister said that India is always ready to deal with developed countries. India never does any trade deal on a deadline basis. When the deal is good and in national interest, we accept it.

America increased 25 percent duty on imports

In a letter sent to the World Trade Organization, India said that on March 26, 2025, the US has adopted a measure in India or from there as a 25 percent duty increase on import of imported passenger vehicles and light trucks and some vehicles and some vehicles.

This fee on vehicle parts has come into force from May 3, 2025 for an unlimited period. Last year, the US imported vehicles worth $ 89 billion globally. It had a share of Mexico $ 36 billion, China’s $ 10.1 billion and India was only $ 2.2 billion.

After all, why is talks with America important?

The Indian team was in Washington to negotiate an interim trade agreement with the US from 26 June to 2 July. This dialogue is important because the suspension of Trump’s counter duty ends on 9 July. Both sides are considering finalizing the talks before that.

On April 2, the US imposed an additional 26 percent retaliation on Indian goods, but was suspended for 90 days. However, 10 percent of the original fee levied by the US is still applicable. India wants a complete discount from an additional 26 percent fee.

The purpose of the agreement bilateral trade

The two countries are expecting to complete the dialogue for the first phase of the proposed bilateral trade agreement (BTA) by September-October this year. The purpose of this agreement is to double bilateral trade from the current $ 191 billion to $ 500 billion by 2030.

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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.