India-U.S. Trade Deal Nears Conclusion, Jaishankar Signals Imminent Outcome
A major trade agreement between India and the United States appears to be in its final stages, with External Affairs Minister S. Jaishankar stating observers should "watch this space for the next few days." Speaking in New York, Jaishankar described the negotiations as "very intricate" but expressed optimism about reaching a "successful conclusion." The potential deal, aimed at enhancing bilateral economic ties, is the culmination of months of intense discussions, with an Indian delegation currently in Washington D.C.
Unpacked:
Key issues include US demands for greater market access for apples, tree nuts, genetically modified crops, dairy, and electric vehicles. India is seeking relief in labor-intensive sectors such as textiles, garments, leather goods, and chemicals. Agriculture and dairy concessions are particularly sensitive for India, while the US focuses on reducing tariff and non-tariff barriers.
A 26% reciprocal tariff on Indian goods, announced by the Trump administration, is set to be reimposed if a deal is not reached by the July 9 deadline. This tariff was temporarily suspended to allow negotiations, creating pressure for both sides to reach an agreement quickly.
For the US, the deal aims to increase market access and reduce trade barriers, potentially boosting exports, especially in agriculture and technology. India seeks expanded access for its labor-intensive exports and relief from tariffs on its goods, which could support job creation and economic growth in key sectors.
Since February 2025, both sides have held intense negotiations, announced formal Terms of Reference, and achieved some progress on agriculture and non-tariff barriers. The Indian delegation's current presence in Washington reflects ongoing efforts to finalize the agreement before the looming deadline.