"You can see some progress in manufacturing and services. But the true FTA would have to include agriculture. I think it is too pre-mature (to include agriculture)," US Ambassador to India David Mulford said.
He was talking to reporters, after the US Ex-Im Bank signed an agreement with Punjab National Bank and other financial institutions for extending $2.2 billion credit line for providing loans to Indian companies for US imports.
Currently, India is at an advance stage of negotiating an FTA like comprehensive co-operation agreement with European Union.
With US being its second largest trading partner, there have been suggestions from sections of industry, both in the US and India, whether the two countries can open their markets to each other through an FTA.
However, with the US searching for its agricultural products and India being apprehensive about opening of this vulnerable section, the chances of free trade between the two countries are not too bright at this moment.
"The problem with the issue is that FTA, to be really effective would also have to include agriculture. That is an area that is not yet ready for free trade negotiations," Mulford said.
