Uncertainty continues to prevail over the trade agreement between India and the US. This is when the deadline of 1 August is also approaching. After this, the US is going to impose retaliatory tariffs on imports from other countries. However, India remains optimistic. It hopes that the talks will eventually end with the signing of the first phase of the Bilateral Trade Agreement (BTA). Its deadline has been set as September-October 2025. In fact, India has drawn its ‘Lakshman Rekha’ on some issues.
That is, there are some areas on which he is not ready to compromise. This is the reason why the deal could not be done. According to sources, the Indian negotiating team has returned to India from the US. India still stands by its stand. It clearly says that agriculture, dairy and GM crops will not be a part of the trade talks.
It was also said that further talks may be needed to finalise the trade agreement. Sources said, ‘Now we have to see what to do next. India is also considering how to move forward.’
The fifth round of negotiations on an interim trade agreement between India and the US took place in Washington from July 14-17. The Indian team was led by Rajesh Agarwal, Special Secretary, Department of Commerce. The US is preparing to impose a retaliatory duty of 26% on India from August 1. This also includes a baseline duty of 10% imposed on all countries. The main reason for the deal not being reached is the differences between the two countries on some sensitive sectors and the threat of reciprocal tariffs. India is adamant on protecting its domestic industries and the livelihood of crores of farmers in sensitive sectors such as agriculture, dairy and GM crops.
Farmers’ organizations are also putting pressure on the government. They want these areas to be kept out of the trade agreement. The US plans to impose a retaliatory tariff of 26% on India and other countries from August 1. This includes a baseline tariff of 10%. This tariff has become a cause of tension for Indian exporters. This will make Indian products expensive in the American market. America is using this tariff as a weapon to force India to give concessions.