India-US Trade Deal Nears Finalization, Expected Within A Week
Analysts suggest that while US products might become more competitive in India due to tariff reductions, India's gains could be more focused on securing continued preferential access for its key export industries.
India‑US interim trade deal expected within a week before tariffs
Strategies to seal an important trade deal are hot within the diplomatic avenues that exist between India and the United States as sources reveal there are high chances that they race to seal a key trade pact by the end of the week. This added pressure is accompanied by a deadline of July 9. It is the deadline after which the further US tariffs suspension of goods entering India will expire. The two countries are also showing a high commitment in smoothing out the differences that exist over years as well as pushing their economic relations to the next level.
The Sense of Deadline-
The deadline is looming on July 9 when the 90-day suspension of the new tariffs on Indian goods by the US is expiring. This is a 26 percent reciprocal duty (tariff) which was first imposed in April 2025. The option available to India is that should no consensus be reached we run the risk of these tariffs increasing to their higher rates and this could affect the exports to its biggest trading partner.
The Core Demands of India-
In the case of India, the ultimate goal of this negotiation would be to have a complete and permanent waiver of the above mentioned 26% reciprocal tariff. In addition to this issue, India is interested in gaining duty reliefs of its labour-intensive industries. These are high value industries like textiles, gems and jewelry, leather goods, and pharmaceutical which are not only important in terms of export basket of India but also constitute important means of employment to people.
US Requirements and Redlines-
On its part, the United States is aiming at increasing the accessibility of diversified products and services into the market. The main areas of interest to the US involve agricultural produce (especially GM crops such as soybean and corn), cars (especially electric cars), wines, petrochemical products, and dairy. The US is as well promoting enhanced access to both digital trade and government procurement.
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However, some sectors continue to be substantive hurdles. India has taken the view that it needs to be cautious about excessively broad agricultural concessions, especially in dairy, because it needs to consider the livelihoods of the millions of small farmers. The issue of the stance on genetically modified food is also another significant hurdle, as India’s regulatory position is very strict.
Bilateral Trade, Vision for Future-
While these elements may be complicated, both India and the US want to be more constructive about the opportunity of a development agenda based on trade. Bilateral trade in the fiscal year to date 2024-25 is already at a very respectable $191 billion, with the US clearly India’s largest trading partner. The leaders of both countries often reiterate the longer term goal of doubling that number to $500 billion by 2030. Conclusion of a trade deal, even if only an interim deal, would be a tangible step towards achievement of that vision.
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Mutual benefit, and Prospects-
A successful trade deal would bring mutual benefit and value to both economies. For example, trade expansion would provide the US a very large, and fast-growing market for its goods and services. Indian exports would also receive a boost; additionally, this would attract more foreign investment into India, and enhance its standing in world supply chains, particularly in certain high growth sectors.
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