Trade negotiations between India and the United States have once again hit a roadblock, with Indian authorities resisting US demands for lower duties on agricultural products like maize and soybean, citing concerns for domestic farmers and health risks associated with genetically modified foods.
The latest developments come ahead of the looming July 9 deadline, when US President Donald Trump’s reciprocal tariffs are set to take effect, imposing a blanket 10% duty on all imports to the US and a 26% levy on select countries, including India.
According to a senior government official quoted by Moneycontrol, while India remains keen to conclude a deal before the deadline, it will not compromise on core issues. “We really want to do a deal before July 9 but there are challenges. The idea is to get a deal which is a win-win,” the official stated, adding that unresolved differences on product inclusions and tariff adjustments have stalled progress on the proposed mini deal.
India Prioritising Agriculture and Dairy
At the heart of the stalemate is India’s determination to protect its sensitive sectors, particularly agriculture and dairy, from increased competition through lower import duties. The simple average tariff for agricultural goods in India stands at 39%, significantly higher than the US average of 5% — a long-standing point of contention for Washington, which has repeatedly criticised India’s high-tariff regime and limited market access for American farm and dairy products.
Sources indicated that Indian negotiators are unwilling to accept the US demand to open up these sectors without adequate safeguards, with officials citing potential adverse effects on rural livelihoods and food security.
No Panic Over Higher Tariffs
Despite the approaching July 9 deadline, the Indian government appears relatively unperturbed about the prospect of 26% reciprocal tariffs, maintaining that India will neither retaliate with higher duties on US goods nor rush into an unfavourable deal.
“India will lose in some areas, gain in some. It’s not like the US is concluding trade deals elsewhere either,” the official remarked, noting that India remains the only country actively negotiating an elaborate agreement with the US.
Minister of Commerce and Industries, Piyush Goyal recently reaffirmed India’s position at the India Global Forum in London, stating that any trade deal must be a fair, equitable, and balanced transaction. “Every negotiation stands on its own legs and must offer merit to both sides. Until both get a fair deal, no agreement can be successful,” he said.
Next Round of Talks Soon
Officials from India’s Ministry of Commerce and Industries are scheduled to visit the US for an upcoming round of in-person discussions to resolve differences over the mini deal and lay the groundwork for the first tranche of the larger Bilateral Trade Agreement (BTA), tentatively planned for later this year.
While optimism remains for a breakthrough before July 9, Indian negotiators have made it clear that strategic sectoral protections and long-term trade balance will take precedence over any immediate tariff relief.
