The Indian team that went to the US to negotiate a trade agreement between India and the US has returned. The Indian team led by chief negotiator Rajesh Aggarwal has returned from Washington after completing another round of talks on the interim trade agreement, but the discussions will continue. The official said that consensus has not yet been reached on many issues like agriculture and auto, hence the discussion will continue.
The official said that the talks are in the final stages and the decision is expected to be announced before July 9. He said that however, there is still a need to resolve issues related to agriculture and auto sectors.
The Indian team went to America from 26 June to 2 July to negotiate an interim trade agreement with America.
These discussions are important because Trump’s suspension of reciprocal tariffs (Tariff Deadline) ends on July 9. Both sides are considering finalizing the talks before that. India has hardened its stand on giving duty concessions to US agriculture and dairy products and does not want any kind of compromise on this as it is a strategically sensitive sector which could be a big setback for India to deal with.
The Indian trade negotiating team has returned at a time when just a few days ago Trump had announced that India is going to make a big cut in tariffs and is opening its market for America. There was also news that India could make a deal within 48 hours. However, this step of India now shows its tough stand. India is not agreeing on many things and is rejecting America’s demand.
India has raised the issue of 25 percent duty in the auto sector. It has raised this matter in the safeguard committee of the World Trade Organization (WTO). India has also told the WTO that it reserves the right to impose retaliatory duties on select US products in response to US tariffs on steel and aluminium. A communication sent by India to the WTO said that effective March 26, 2025, the US has imposed a measure in the form of a tariff increase of up to 25 per cent on imports of passenger vehicles and light trucks, and certain automobile parts originating in or from India.