New Delhi, 6 July (PTI), with India setting its red lines on key issues in sectors such as agriculture and dairy products for the proposed temporary trade agreement with the US, the ball is now at the Washington court to complete the agreement.
They said that if the problems are resolved, the provisional trade contract may be announced before 9 July, which means the end of the 90 -day suspended period of Trump tariffs announced on April 2 to dozens of countries, including India.
“India drew her red lines … Now the ball is at the American court,” they said.
In February, both countries announced the commencement of negotiations on a bilateral trade agreement (BTA). They modified the deadline for closing the first trance or phase of BTA in autumn (September-October) this year. Previously, both parties were locked to complete a temporary trade contract.
April 2, the US deposited another 26 % reciprocal tariff on Indian goods, but suspended it for 90 days. However, 10 % of the basic tariff stored by America remains in place. India is looking for a full exception of this 26 % tariff.
“If the proposed business interviews fail, 26 % of the tariffs will come into force again,” one of the sources said.
Trade Minister Piyush Goyal said last week that India does not record any trade agreement on the basis of deadlines and the proposed business agreement with the US will only accept when fully completed, properly concluded and in the national interest.
FTA is only possible when both sides are beneficial and it should be a mutually advantageous agreement, he said.
“National interest should always be the highest. Given if an agreement is concluded, India is always ready to deal with developed countries,” Goyal said July.
The Indian team returned from Washington last week after talking to the US on a temporary trade. There are also differences on steel, aluminum (50 %) and car (25 %) of tariffs.
India has hardened its position in the area of providing concessions for agriculture on agriculture and dairy products because both are sensitive objects. India has never opened the milk sector in any of the previous signed trading pacts.
US President Donald Trump said last week that his administration was sending letters to the first dose of 10-12 countries, sharing details of rates and the whole process could be completed by July 9.
As a result of the growing tension in India, his comments came about whether the new Delhi and Washington could strengthen the highly anticipated trade agreement before the end of the US President’s tariff. But he was not named Earth.
The President said that mutual tariffs would enter into force from 1 August.
While the US is looking at concessions on duties in sectors such as certain industrial goods, cars (especially electric vehicles), wines, petrochemical products, dairy products and agricultural objects such as apples, nuts and hay; India can look at cuts for industry -intensive industries such as clothing, textiles, gems and jewelry, leather, plastics, chemicals, oil seeds, shrimp and gardening products.
The US is the largest Indian business partner in 2021-22. During 2024-25, bilateral trade was $ 131.84 billion ($ 86.51 billion exports, $ 45.33 billion and $ 41.18 billion).
Indian exports of goods to the US increased in April by 21.78 % to $ 17.25 billion, while imports increased by 25.8 % to $ 8.87 billion. In 2018, a two -way service in service expanded from $ 54.1 billion to an estimated $ 70.5 billion in $ 2024.
India is also a key destination for American companies such as professional, scientific and technical services, production and IT. The US represents about 18 % of total exports between Indian goods and more than 6 % in imports and about 11 % in bilateral trade.
India received between April 2000 and March 2025 $ 70.65 billion, making Washington the third largest investor.
In 2024, the main Indian exports to the US belonged to drug formulations and biological substances ($ 8.1 billion), telecommunications tools ($ 6.5 billion), rare and semi -precious stones ($ 5.3 billion), oil products (USD 2.8 billion), including 2.8 billion) including 2.8 billion), including 2.8 billion), including 2.1 billion. iron and steel ($ 2.7 billion).
Imports included oil ($ 4.5 billion), petroleum products ($ 3.6 billion), coal, coke ($ 3.4 billion), reduction and polished diamonds ($ 2.6 billion), electric machines ($ 1.4 billion), aircraft, cosmic assembly and parts ($ 1.3 billion).
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