India-US trade: Can India & US seal the deal? July 9 deadline fuels enduring partnership optimism, albeit past turbulence
India’s talks with the US for a Bilateral Trade Agreement, which would smoothen gross exports worth USD 86.5 billion (FY 2024–25 data, up 11.6 per cent from FY 23–24), are walking on a double-edged sword.
With the progression of a second Trump administration, there is a renewed and pressing push for comprehensive trade relations. Current high-level negotiations are underway, with India and the US aiming to finalise an interim three-phase trade agreement by June 25, ahead of a potential July 9 deadline for the USA’s 26 per cent reciprocal tariff on India, which is currently suspended.
While Indian exports still face America’s standard 10 per cent baseline tariff, discussions are focused on securing duty reductions across labour-intensive Indian sectors like textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas. In return, the US seeks tariff reductions in industrial products, automobiles (especially electric vehicles), wines, petrochemicals, dairy, and agricultural goods such as apples and tree nuts.
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