India-U.S. commerce pact doubtless earlier than July 9; sure points nonetheless pending in agri, auto sectors

The Indian crew is led by chief negotiator Rajesh Agrawal. He is Special Secretary within the Department of Commerce.

The official stated that the talks are within the final part and its conclusion is predicted to be introduced earlier than July 9, which marks the top of the 90-day suspension interval of the Trump tariffs imposed on dozens of nations together with India.

“Indian team is back from Washington. Negotiations will continue. There are certain issues which need to be resolved in agriculture and auto sectors,” the official stated.

India has raised points over 25% responsibility in auto sectors. It has taken up the matter within the Safeguards committee of the World Trade Organisation (WTO).

India has additionally knowledgeable the WTO that it has reserved the best to impose retaliatory duties on choose U.S. merchandise in response to American tariffs on metal and aluminium.

On March 26, 2025, the U.S. adopted a measure within the type of a tariff enhance of 25% advert valorem on imports of passenger autos and light-weight vehicles, and on sure vehicle components originating in or from India, a communication despatched by India to WTO stated.

The measure on vehicle components applies from May 3, 2025 and for a vast period.

The U.S. imported $89 billion price of auto components globally final 12 months, with Mexico accounting for $36 billion, China for $10.1 billion, and India for simply $2.2 billion.

In agriculture sector, the U.S. is searching for responsibility concessions on merchandise like dairy objects, apples, tree nuts, and genetically modified crops.

However, being a politically delicate sector, will probably be tough and difficult for India to supply any concessions within the agri sector.

India has not opened up the dairy sector for any of its buying and selling companions in free commerce pacts the nation has signed to date.

India has hardened its place on giving responsibility concessions to American farm and dairy merchandise.

The Indian crew was in Washington for negotiations on an interim commerce settlement with the U.S. from June 26 – July 2.

These talks are essential because the suspension of Mr. Trump’s reciprocal tariffs is ending on July 9. The two sides are taking a look at finalising the talks earlier than that.

On April 2, the U.S. imposed an extra 26% reciprocal tariff on Indian items however suspended it for 90 days. However, the ten% baseline tariff imposed by America stays in place. India is searching for full exemption from the extra 26% tariff.

The U.S. additionally desires responsibility concessions on sure industrial items, cars, particularly electrical autos, wines, and petrochemical merchandise.

On the opposite hand, India is searching for responsibility concessions for labour-intensive sectors like textiles, gems and jewelry, leather-based items, clothes, plastics, chemical substances, shrimp, oil seeds, grapes, and bananas within the proposed commerce pact.

The two international locations are additionally seeking to conclude talks for the primary tranche of the proposed bilateral commerce settlement (BTA) by fall (September-October) this 12 months. The pact is geared toward greater than doubling bilateral commerce to $500 billion by 2030 from the present $191 billion.

Before the primary tranche, they’re making an attempt for an interim commerce pact.

The U.S. crew was right here final month for the talks.

India’s merchandise exports to the U.S. rose by 21.78% to $17.25 billion in April-May this fiscal, whereas imports rose by 25.8% to $8.87 billion.