India-US trade talks moving fast as fresh deadline nears: Piyush Goyal

India and US negotiators are in Washington for intense discussions, with the interim trade pact facing a critical deadline and pressure from the US on tariff concessions

Commerce and Industry Minister Piyush Goyal on Monday said that talks between India and the United States (US) are progressing rapidly, at a time when negotiators from New Delhi have arrived in Washington for a week-long round of intense discussions.

 

“Trade talks between the two nations are going at a fast pace, in the spirit of mutual cooperation, so that we can come out with a win-win agreement,” Goyal said.

 

A team of officials headed by Chief Negotiator and Commerce Department Special Secretary Rajesh Agrawal are back in Washington—less than two weeks after the conclusion of the previous round of talks. Thereafter, the US administration extended the deadline for the imposition of country-specific reciprocal tariffs by three weeks to 31 July.

 

 

Talks with the US for an interim deal have hit a critical juncture, amid mounting pressure on India to finalise a pact before 1 August or face 26 per cent reciprocal tariffs. 

 

US President Donald Trump has been ramping up pressure on countries to lower tariff barriers by concluding trade agreements with America. Since 8 July, Trump has sent formal letters to over two dozen trade partners, threatening them with steep reciprocal tariffs ranging between 20 and 50 per cent from 1 August—leaving room for negotiations. For the rest of the countries, Trump is eyeing 15–20 per cent tariffs, up from the existing 10 per cent.

 

So far, India has been kept off the list. However, there is still no clarity on whether both sides will be able to finalise an interim agreement after the conclusion of the current round of talks. 

 

A senior government official said that an interim deal can be finalised before 1 August, if it is a mutually beneficial pact. “It takes two to tango,” the official said, adding that if an interim deal is not agreed upon before 1 August, both sides will go ahead with discussions towards finalising the first tranche of a Bilateral Trade Agreement (BTA) by the autumn of 2025.

 

India and the US were trying to finalise an interim deal by the previous deadline of 9 July. However, differences over certain issues prolonged discussions between both sides. Agriculture and dairy have been key areas of contention, with Washington pressurising India for greater market access. In its offer, India has so far steered away from including several items from the politically sensitive area of agriculture in the deal—despite the pressure.

 

Both sides are eyeing a largely tariff-focused deal.