NEW DELHI, June 10, 2025 — The latest round of closed-door negotiations between India and the United States wrapped up on Tuesday after four days of back-to-back meetings in New Delhi. Officials say the talks marked real progress toward an interim trade agreement that could be finalized as early as this month.
The deal, once signed, is expected to help boost annual bilateral trade from the current $190 billion to $500 billion by 2030.
Tariffs and Market Access
Negotiators focused on opening markets for both agricultural and industrial goods, with the US pushing India to lower restrictions on imports like wheat, dairy, and corn. Indian officials stood firm on protecting domestic agriculture but offered to lower tariffs on select US products such as almonds, pistachios, and walnuts.
India also urged the US to remove the 10 percent baseline tariff introduced under the Trump administration. The US side was not receptive, citing similar restrictions even on close allies like the UK.
Steel and textile exports were another sticking point. India asked for relief from the steep US tariffs on steel and emphasized that many Indian goods, including rice and shrimp, face unfair barriers under current trade rules.
Digital Trade and Energy
Digital trade emerged as a major theme. Both sides discussed new frameworks for customs processes, secure data sharing, and cross-border e-commerce. Sources familiar with the talks said progress was made on measures to simplify digital transactions and reduce delays at ports.
Energy cooperation also came up. India expressed willingness to increase imports of US liquefied natural gas, crude oil, and coal. In exchange, Indian officials are hoping for better access to US markets for key sectors and a rollback of protectionist policies.
A Deal in Sight?
With President Donald Trump and Prime Minister Narendra Modi expected to meet at the G7 Summit in Canada later this month, sources say an initial agreement could be announced on the sidelines of that event.
Trump, who faces political pressure over his tariff policies, is reportedly eager to secure a deal with India before his 90-day pause on reciprocal tariffs expires. That deadline could result in a 26 percent tariff on Indian exports if no agreement is reached.
Commerce Minister Piyush Goyal, who was in Switzerland finalizing a separate deal with the European Union, said India is open to moving ahead with a limited deal first and leaving more complex issues for future rounds.
Officials believe a broader agreement could be signed by September or October if the interim pact goes through smoothly.
The Bigger Picture
For India, these trade deals are part of a larger push to deepen global economic ties and reduce dependence on any single market. For the US, a successful agreement would not only boost trade but also signal stronger ties with a key democratic partner in the Indo-Pacific.
As negotiations continue, both sides appear determined to find common ground. Whether that leads to a breakthrough or another delay will depend on the willingness to compromise on sensitive issues, especially tariffs and agriculture.
Written by Dhruva Ambati
