Indian and U.S. officials are engaged in high-level discussions this week to finalize tariff reductions in key sectors such as agriculture and automobiles, according to two government sources. The negotiations aim to conclude an interim trade deal, with a formal announcement likely by the end of June.
A U.S. delegation led by senior officials from the Office of the United States Trade Representative (USTR) began closed-door, two-day talks in New Delhi on Thursday with Indian trade officials led by chief negotiator Rajesh Agrawal, the sources said.
“During the current round of talks, negotiators are discussing tariff cuts on specific sectors including agriculture and autos, and proposed benefits for Indian companies,” said one Indian government source.
The deal may be officially unveiled before U.S. President Donald Trump’s self-imposed deadline of July 9, but an initial statement could be issued as soon as meetings conclude, possibly by Sunday, a second official noted. Trade Minister Piyush Goyal, currently in Italy, may return to meet the U.S. delegation, the source added.
The officials requested anonymity due to the sensitivity of the ongoing discussions.
U.S. Commerce Secretary Howard Lutnick said in Washington on Monday that trade negotiations were progressing well and that an agreement could be finalized soon.
India and the United States agreed in February to pursue a phased trade pact aimed at boosting bilateral trade to $500 billion by 2030. While India is encouraged by recent trade progress with the UK and ongoing talks with the EU, it continues to resist American demands to open its farm and dairy markets, citing concerns about a potential rural backlash.
“We are ready to offer a better deal than the UK pact, with average tariffs down to 10%, matching the U.S. base rate, and near-zero duties with quotas in exchange for market access and supply chain linkages,” a third official said.
Washington has raised concerns about India’s average farm tariff of 39%, with some duties reaching 45–50%. It is also urging India to allow corn imports for ethanol production.
Bilateral trade between India and the United States—India’s largest trading partner—rose to $129 billion in 2024, with India recording a trade surplus of $45.7 billion.
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