July 21, 2025

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Indian negotiating team returned from America, new date revealed for Indo-US trade deal

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Indian negotiating team returned from America, new date revealed for Indo-US trade deal

The talks on bilateral trade agreement between India and America are now at a decisive stage. After the fifth round of talks, American negotiators will now come to India in August. Both countries are preparing to finalize the first phase of the trade deal. There are reports that the deal is possible by September or October, although the path is not easy. India has made its position clear on sensitive issues like agriculture and dairy, while America is also under pressure to meet the deadline of 26% additional tariff.

A senior Commerce Ministry official said on Monday that the Indian negotiating team has returned from the US. After the successful fifth round of talks, the next round will now be held in India in the second half of August.

Developments so far

Last week, the fifth round of talks took place in Washington DC. The talks were led by Rajesh Agarwal, Special Secretary (Commerce Department) from India and Brendan Lynch, Assistant US Trade Representative (South and Central Asia) from the US side. Both sides are trying to finalise an interim agreement before August 1, which can avoid the 26% additional tariff announced by the US.

Key demands of America

The key demands of America include exemption in custom duty on electric vehicles (EV), wine, petrochemicals, dairy and agricultural products. Along with this, the US also wants relief in import duty from India on apples, nuts, genetically modified (GM) crops and other industrial goods.

India’s strategy

India has clearly refused to give any kind of duty exemption in agriculture and dairy sector. Till now India has not given any kind of exemption to the dairy sector in any Free Trade Agreement (FTA). Along with this, India is demanding the removal of 26% additional tariff from the US, relief in import duty on steel (50%), aluminium and auto sector (25%). India has also reserved the right to impose retaliatory tariffs under WTO rules.

India has sought tariff concessions for labor-intensive sectors in the proposed trade agreement. These include textiles, gems and jewelery, leather products, plastics, chemicals, agricultural products such as shrimp, seeds, grapes and bananas.

Deal possible by September-October

India’s exports to the US grew by 22.8% to $25.51 billion in the April-June quarter of 2025, while imports from the US grew by 11.68% to $12.86 billion. Both countries are working towards finalizing the first phase of the trade deal by September-October, but at present approving an interim trade agreement before August 1 has become the top priority of both sides.

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