New Delhi, Jul 19: India and the United States concluded the fifth round of negotiations for the proposed bilateral trade agreement (BTA) on July 17 in Washington, as both nations intensify efforts to reach an interim deal before August 1. The four-day talks, held from July 14 to 17, were led by Rajesh Agrawal, India’s chief negotiator and Special Secretary in the Department of Commerce.
With the 90-day suspension on the Trump-era tariffs (26%) set to expire on August 1, both sides are pushing for consensus on multiple issues. The US had initially imposed steep reciprocal tariffs on several countries, including India, on April 2 this year. This prompted negotiations aiming at tariff revisions and a broader trade agreement.
Discussions focused on sectors including agriculture, automobiles, and strategic technologies. India reiterated its firm stance on the US request for tariff cuts on agri and dairy products. New Delhi remains cautious, having never offered dairy sector concessions in any trade pact to date. Farmer associations have also raised concerns, urging the government to keep agriculture outside the agreement’s purview.
India is pushing for the removal of the 26% Trump-era duties and seeking tariff relief for steel, aluminium (50%), and the auto sector (25%). The country is also advocating for market access and duty concessions on labour-intensive exports such as textiles, gems and jewellery, leather, garments, plastics, chemicals, seafood, and various fruits.
The US side is demanding lower tariffs on industrial and agricultural products including electric vehicles, wines, petrochemicals, dairy, apples, nuts, and genetically modified crops.
Both countries are targeting a phased agreement, with the interim pact likely to precede a full bilateral deal expected by fall this year. The current momentum underscores a broader realignment of trade relations as India asserts its trade rights under WTO provisions while balancing domestic interests.
India’s exports to the US grew by 22.8% to USD 25.51 billion in the April-June quarter of FY25, while imports stood at USD 12.86 billion, up 11.68%.
