Indian and U.S. negotiators have made notable progress in crafting a bilateral trade agreement, focusing on market access for industrial and agricultural goods, tariff reductions, and addressing non-tariff barriers. According to a report by Reuters, the negotiations, held in New Delhi, were productive and aimed at achieving a balanced agreement with early wins.
Read also: India Considers Tariff Reductions on U.S. Imports Amid Trade Negotiations
The talks, led by senior officials from the Office of the U.S. Trade Representative and Indian trade ministry officials, also covered enhancing bilateral digital trade by improving customs and trade facilitation measures. Both sides aim to finalize the initial tranche of the trade pact soon, with an interim agreement expected by the month’s end, ahead of the expiration of President Trump’s 90-day pause on reciprocal tariffs.
Commerce Minister Piyush Goyal, currently in Switzerland for discussions with European trade partners, emphasized India’s readiness to proceed by first addressing simpler issues. The more complex matters are slated for the next negotiation phase, targeting the signing of the first tranche by September or October.
India has resisted U.S. demands to open its markets to imports of wheat, dairy, and corn, while proposing lower tariffs on high-value American products like almonds, pistachios, and walnuts. India also requested the revocation of a 10% baseline tariff, which the U.S. opposed, citing similar conditions in its trade agreement with Britain. Additionally, India sought an exemption for its steel exports from a 50% tariff. The potential imposition of a 26% tariff on Indian goods could severely impact key exports such as rice, shrimp, textiles, and footwear, which together account for nearly 20% of India’s merchandise exports, potentially hindering exports and reducing foreign investment inflows.
Despite these challenges, India has committed to increasing its purchases of American goods, including energy products like liquefied natural gas, crude oil, coal, and defense equipment. Data from IndexBox indicates that India’s exports to the U.S. rose by 28% to $37.7 billion in the first four months of 2025, while imports climbed to $14.4 billion, thereby widening India’s trade surplus.
