4 hours ago
Last Updated:July 03, 2025, 09:26 IST
External Affairs Minister S Jaishankar, too, had expressed hope that trade negotiations between India and the US would reach a "successful conclusion"
Prime Minister Narendra Modi with US President Donald Trump (Reuters file photo)
India is hopeful of finalising a long-pending tariff deal with the United States within a day or two, with top government sources confirming that negotiations are now in their “last leg". While talks are progressing positively, the Indian side is standing firm on protecting domestic interests, particularly those of farmers, a key consideration delaying the final agreement.
According to senior government officials, New Delhi has made it clear that it cannot completely open up its dairy sector, which serves as the economic backbone for millions of Indian farmers. The government maintains that any concessions in this area would directly impact rural livelihoods. Sources also noted that American negotiators have so far shown sympathy toward India’s position and concerns over agricultural and allied sectors.
Sources added that India is considering offering tariff concessions on certain US-made electronic goods, while the United States may provide limited relief on dairy products and select genetically modified items. These possible trade-offs were discussed during the latest round of negotiations held in Washington.
External Affairs Minister S Jaishankar, too, had expressed hope that trade negotiations between India and the US would reach a “successful conclusion", emphasising the need for the two countries to find a “meeting ground".
President Donald Trump had expressed optimism about finalising a trade agreement with India that could lead to significantly lower tariffs for American goods, provided New Delhi takes steps to ease market access for US companies.
Trump had earlier said that India appeared willing to reduce trade barriers, potentially clearing the path for an agreement ahead of a looming July 9 tariff deadline.
“Right now, India doesn’t accept anybody in. I think India is going to do that. If they do, we’re going to have a deal for less—much less—tariffs," Trump remarked, referencing the 26% reciprocal tariffs he announced on April 2, which are currently suspended pending trade negotiations.
Indian negotiators, led by Commerce Secretary Rajesh Agrawal, extended their stay in Washington into this week in a last-ditch effort to iron out differences and reach consensus on outstanding issues. According to government sources, both sides are working intensely to find middle ground, particularly around sensitive sectors like agriculture and digital trade.
Meanwhile, a White House official familiar with the ongoing discussions said the Trump administration is prioritising deals with key partners like India ahead of others, such as Japan, in the run-up to the July 9 deadline, signalling the strategic importance Washington places on deepening bilateral trade ties with New Delhi.
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...
Read More
News india India Hopes For US Tariff Deal Next 2 Days, Dairy Remains Key Sticking Point: Top Govt Sources
