India and the US are engaged in high-level negotiations in New Delhi to finalise an interim trade deal, with the focus on tariff reductions in agriculture and automobiles. A senior US delegation from the Office of the United States Trade Representative began two days of closed-door discussions with Indian trade officials, led by chief negotiator Rajesh Agrawal, according to government sources.
Talks are centred on tariff cuts and proposed benefits for Indian businesses, with an announcement expected by the end of the month, ahead of President Trump’s July 9 deadline, according to one official. A statement is expected once meetings are completed. Trade Minister Piyush Goyal, who is currently in Italy, may return to India to meet with the US delegation.
Both countries agreed in February to work towards a phased trade deal aimed at increasing bilateral trade to $500 billion by 2030.
India is cautious about fully opening its agricultural and dairy markets due to fears about a domestic backlash. US negotiators are aiming for lower average tariffs, as India’s farm tariffs currently average 39% and peak at 50% for some crops. Bilateral trade increased to $129 billion in 2024, with India posting a $45.7 billion surplus.
