An interim trade deal between India and the United States is likely to be finalised in the next 48 hours, with negotiations underway in Washington, sources told NDTV on Thursday. India’s trade team extended its stay in Washington last week to iron out key differences as the two sides look to clinch a deal before the July 9 deadline when the pause on US tariffs is set to be lifted.
Both sides have dug in their heels over a number of issues, including Washington’s demand that India open its market to genetically modified crops – a long-standing red line for New Delhi due to risks to its farmers.
The US is also pressing for greater market access to the Indian agricultural and dairy sectors. However, sources told NDTV Profit that both these sectors are likely to be kept out of the purview of the proposed deal due to concerns over rural livelihoods and food safety.
India, on the other hand, is reportedly pushing for meaningful tariff concessions on its labour-intensive exports like footwear, garments, and leather, which are major job creators.
New Delhi is unwilling to sign a deal that doesn’t address both sectoral access and reciprocal tariffs on its exports, with negotiators maintaining that without broader tariff cuts, especially on high-employment goods, the goal of doubling bilateral trade to $500 billion by 2030 is unrealistic.
Per the NDTV profit report, the focus of the deal has narrowed to reciprocal tariff reductions or removals, as officials have called on both nations to prioritise lowering overall duty barriers.
“Our estimate is that once the Interim India-US Trade Deal is finalised, Indian exports to the US will double within the next three years,” Federation of Indian Export Organisations (FIEO) CEO Ajay Sahai told NDTV.