Kumar Bahukhandi
No agreement was reached on many issues, India does not agree with America’s demands-File Photo-Reuters
The Indian team that went to the US for tariff and trade agreement has returned from Washington. An official informed that consensus has not been reached on many issues yet, due to which discussions are ongoing.
The Indian team that went to the US to negotiate a trade agreement between India and the US has returned. The Indian team led by chief negotiator Rajesh Aggarwal has returned from Washington after completing another round of talks on the interim trade agreement, but the discussions will continue. The official said that consensus has not been reached on many issues like agriculture and auto, so the discussions will continue.
The official said that the talks are in the final stage and the decision is expected to be announced before July 9. He said that however, there is still a need to resolve issues related to agriculture and auto sectors. The Indian team went to America from June 26 to July 2 to negotiate an interim trade agreement with the US. These discussions are important because Trump’s suspension of reciprocal tariffs (Tariff Deadline) is ending on July 9. Both sides are considering finalising the talks before that. India has hardened its stand on giving duty concessions to American agricultural and dairy products and does not want to make any kind of compromise on this, because it is a strategically sensitive sector, which can be a big setback if India makes a deal.
India’s tough stand
The Indian trade negotiation team has returned at a time when just a few days ago Trump had announced that India is going to make a huge reduction in tariffs and is opening its market for America. At the same time, it was also reported that India can make a deal within 48 hours. However, now this step of India shows its tough stand. India does not agree on many things and is rejecting America’s demand.
India sent a message to WTO regarding tariff
India has raised the issue of 25 percent duty in the auto sector. It has raised this matter in the Security Committee of the World Trade Organization (WTO). India has also told the WTO that it reserves the right to impose retaliatory duty on selected American products in response to US tariffs on steel and aluminum. A message sent by India to the WTO states that on March 26, 2025, the US has taken a measure in the form of a tariff increase of 25 percent on the import of passenger vehicles and light trucks and some automobile parts coming to or from India. What does the US want from India? The US also wants duty concessions on some technology products, automobiles, electric vehicles, wine, petrochemical products and agricultural goods like apples, tree nuts and genetically modified crops. It also wants to deal with India regarding dairy, but India has not yet done a deal on this.
What concessions does India want from America?
India wants duty concessions for sectors like textiles, gems and jewellery, leather goods, apparel, plastics, chemicals, shrimp, oilseeds, grapes and bananas under the proposed trade agreement. If consensus is not reached then… The way both the countries are not able to reach a solution regarding agri, auto and other sectors, the question arises that what option will be left for these two countries. Some experts are saying that if consensus is not reached then it is possible that there may be a mini trade deal between these two countries, in which the deal can be completed on all the areas except the disputed areas.
