The Interim Trade Agreement in India-US is ready to publish before July 8, as the two peoples reportedly agreed to all conditions. This follows the negotiations led by Rajes Agraval, India’s chief negotiator and a special secretary at the Trade Ministry, which has been discussing in Washington. This deal is crucial as it coincides with the deadline set by former US President Trump to impose reciprocal tariffs, which can cause significant economic implications if it is not resolved in a timely manner.
Trade negotiations are against the background of the tariff deadline on July 9, following Trump’s “What We Want” to Tariff Extensions, as mentioned in a conversation with Fox News. The United States initially suspended a 26 % tax on Indian import as of April 2 to bridge the trade deficit while maintaining a 10 % basic tariff. India is actively demanding complete release from these additional tariffs, a critical aspect of the current trade dialogue.
The expected trade agreement is expected to focus on several sectors, including agriculture, cars, industrial products and products intensive labor. Namely, agriculture and dairy products remain disputed areas where India is contested to provide on -duty concessions for the United States. In contrast, the United States has its own views set to concessions for specific industrial products, cars – especially electric vehicles – and agricultural products such as apples and genetically modified crops. These sectors are considered key to both economies in order to improve the benefits of trade.
India requires reciprocal benefits in the trade pact, especially in labor intensive sectors such as textiles, gems, jewelry, leather products and certain agricultural products. The strategic goal is to provide on -duty concessions that may benefit Indian exports in these segments, improving economic links with the United States. According to sources, both sides are working towards a comprehensive first tranche of a bilateral trade agreement (BTA) by October 2025, which is expected to further cement the economic partnership.
Trade discussions have been highlighted by Trump’s recent remarks about removing all trade barriers, which he described as “unthinkable”. This reflects a broader intention to strengthen economic cooperation between the two countries, potentially facilitating access to the market and strengthening bilateral trade engagements. The successful conclusion of this deal can mark a significant turning point in relations between India and the United States, encouraging a stronger economic partnership and opening up new ways to cooperate in the future.
(With bird and agencies)
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