US-India 'mini trade deal' likely in 48 hours—What to expect
What's the story
India and the United States are on the verge of finalizing an interim 'mini trade deal,' according to NDTV. It could be announced in the next 48 hours. The negotiations are currently taking place in Washington, DC. Both sides have been working hard to resolve their differences before the July 9 deadline when US tariffs are expected to resume. The Indian trade team has extended its stay in Washington last week for these discussions.
Sticking points
Sticking points in the negotiations
The trade negotiations have been marked by several sticking points. One major issue is Washington's demand for India to open its market to genetically modified crops, a demand that has long been resisted by New Delhi over fears of harming its farmers. The US also seeks greater access to Indian agricultural and dairy sectors, which are likely to be excluded from the proposed deal due to rural livelihood and food safety concerns.
Trade concessions
India pushing for concessions on labor-intensive exports
India is pushing for significant tariff concessions on its labor-intensive exports, including footwear, garments, and leather. These sectors are major job creators in the country. With respect to US's demands, Indian officials have made it clear that it cannot fully open up its dairy sector as it forms the economic backbone for millions of Indian farmers.
Presidential hopes
Trump optimistic about finalizing trade deal with India
US President Donald Trump has expressed optimism about finalizing a trade deal with India that could significantly reduce tariffs on American goods. He has also emphasized that this is contingent on New Delhi taking steps to ease market access for US companies. The focus of the deal has now shifted toward reciprocal tariff reductions or removals, with officials urging both countries to prioritize lowering overall duty barriers.