India toughens stance on agri points; commerce talks with U.S. enter essential part

India has hardened its place on points associated to agriculture as negotiations with the U.S. workforce in Washington have entered a vital stage, an official stated on Monday (June 30, 2025).

The official additionally stated that the keep of the Indian workforce, headed by particular secretary within the division of commerce Rajesh Agrawal, is predicted to be prolonged additional.

The workforce is in Washington for negotiations on an interim commerce settlement with the U.S. Both sides are dashing to shut a deal forward of the July 9 deadline for the total implementation of a 26% reciprocal tariff which has been suspended since April.

“If the proposed commerce talks fail, the 26% tariffs will come into power once more,” the official added.

The keep of the Indian officers has already been prolonged for 3 days till June 30. Initially, the delegation was scheduled to remain for 2 days with the talks having commenced on June 26.

Another official stated that the Commerce Ministry has knowledgeable home exporters and business that the talks are on for the primary part of the proposed bilateral commerce settlement. There can be extra phases.

These talks are important as each international locations are engaged in negotiations for an interim commerce deal and try to finalise the pact earlier than July 9, the deadline for the expiry of the suspensions of reciprocal tariffs imposed by the Donald Trump administration on April 2.

On April 2, the U.S. imposed a further 26% reciprocal tariff on Indian items however suspended it for 90 days. However, the ten% baseline tariff imposed by America stays in place. India is looking for full exemption from the extra 26% tariff.

The U.S. is demanding responsibility concessions in each agriculture and dairy sectors.

But these segments are tough and difficult areas for India to present responsibility concessions to the U.S. as Indian farmers are into sustenance farming and have small land holdings. Therefore, these sectors are politically very delicate. India has not opened up dairy sectors for any of its buying and selling companions in any free commerce pacts the nation has signed to date.

The U.S. desires responsibility concessions on sure industrial items, vehicles — particularly electrical automobiles, wines, petrochemical merchandise, dairy, and agricultural objects like apples, tree nuts, and genetically modified crops.

India is looking for responsibility concessions for labour-intensive sectors like textiles, gems and jewelry, leather-based items, clothes, plastics, chemical compounds, shrimp, oil seeds, grapes, and bananas within the proposed commerce pact.

Also Read | India and U.S. can solely finalise ‘mini’ commerce deal this 12 months: Sources

The two international locations are additionally seeking to conclude talks for the primary tranche of the proposed bilateral commerce settlement (BTA) by fall (September-October) this 12 months. The pact is geared toward greater than doubling bilateral commerce to $500 billion by 2030 from the present $191 billion.

Before the primary tranche, they’re making an attempt for an interim commerce pact.

The U.S. workforce was right here from June 5 to June 11 for the talks. The negotiations will proceed each nearly and bodily within the days to come back.

India’s merchandise exports to the U.S. rose by 21.78% to $17.25 billion in April-May this fiscal, whereas imports rose by 25.8% to $8.87 billion.