Washington DC3 minutes ago
- Copy link
Of the top 10 trading partners in India, only America is the only country, which does not have a trade deficit to India.
Talks on the trade deal started between India and the US in February. It has been 6 months since this conversation, but both countries have not yet reached any conclusion.
Meanwhile, US President Donald Trump has announced on Wednesday that he will impose 25% tariffs on India from August 1 and will also impose fine for buying weapons and oil from Russia.
Even after such a long conversation, the result was not yet out. America wants entry into the Agri and Dairy sector of India, but India is not ready for it. Know what are the possible reasons for not getting the deal in the story ahead.
Differences in agriculture and dairy sector
The US is demanding India to open the Indian market for agriculture and dairy products and reduce tariffs. However, India has declared these sectors as its red line.
Any kind of decision in these sectors can affect local farmers, rural employment, and food security.
Apart from this, India is very concerned about American dairy products, as milch animals are fed non -vegetarian fodder (blood miles) in the US, which is against Indian cultural and religious sentiments.
Trump’s tariff policy disagree
On April 2, 2025, the US had announced a 26% reciperook (such as Ko Tit) tariff on several countries including India, which was suspended till 9 July.
India does not agree with this extra tariff. Apart from this, it is demanding exemption in the already implemented American tariffs on steel, aluminum, and auto parts.
On the other hand, the US wants to maintain 10% baseline tariff and is demanding zero tariffs in some sectors from India.
In view of American concerns, India had also drastically cut tariffs on many American products in its budget.
India wants more space in American market
India and America were earlier working on a mini trade deal, which was planned to be completed before July 8, 2025. However, now both countries want to enact a big trade agreement, which has made the process complicated.
India wants its textile, jewelry, leather and plastic industry to find more space in the American market. On the other hand, the US wants India to reduce non-tariff problems. There is no agreement between the two on this issue.
India is aware of its economic interests
According to experts, India is taking care of its economic and strategic interests. India is cautious about Trump’s statements, as it can impose conditions that are already separated in the dialogue.
India has made it clear that it will not sign on any deal that only fulfills American benefits.
Apart from this, the Government of India is also under pressure from farmer organizations and civil society. The government cannot ignore this.
Trump had earlier said- India will not tax our goods
Donald Trump said on 17 July that soon American products are going to reach India markets. Like Indonesia Formula, American products will also have zero tariffs in India.
Trump had said- We have entered into agreements with many countries. We are going to have another agreement, perhaps with India. We are talking. When I send a letter, that agreement will be reached.
Trump imposed 19% tariff on Indonesia on 15 July. From August 1, goods from Indonesia to America will be charged 19% tariffs. At the same time, there will be no tariff on American goods in Indonesia.
US team will come to India on August 25 for trade deal
American officials will come to India on 25 August to discuss the sixth round regarding the Bilateral Trade Agreement (BTA).
The two countries are working towards completing the first phase of trade agreement by September-October. Along with this, the possibility of an interim trade agreement is also being searched.
The previous round of talks about the trade deal took place in Washington. There was discussed by Chief Negotian Rajesh Aggarwal of India and US Trade Representative Brendon Lynch. Read full news …
