India-US Trade Deal / US team will come to India in August for the next round of talks, know the details

India-US Trade Deal: Discussions have intensified between India and the US regarding the proposed bilateral trade agreement. A senior official informed on Monday that the US delegation will visit India for the next round of talks in the latter half of August. Both countries are committed to finalizing an interim trade agreement before August 1, 2025. This agreement can be an important step towards further strengthening trade relations between the two countries.

Fifth round of talks: Key issues and progress

Last week, the delegations of the two countries completed the fifth round of talks in Washington. Rajesh Agarwal, Special Secretary, Department of Commerce from India and Brendan Lynch, Assistant Trade Representative for South and West Asia Region from the US, led their respective teams. In this round, there was an intense discussion on issues related to agriculture, automobile sector, non-market economies, and SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technology).

However, differences remain between the two sides on some issues. In particular, India has taken a tough stand on the US demand for duty concessions on agricultural and dairy products. India has so far refrained from making concessions in the dairy sector in any trade agreement, and is likely to maintain this stance this time too. Some farmer organizations have demanded the government to keep agriculture-related issues out of the agreement, which has further strengthened India's stand.

US tariffs and India's response

In April this year, US President Donald Trump announced high retaliatory customs duties on several countries, including India. An additional 26% duty was imposed on India, which was first suspended till July 9 and later till August 1, 2025. This suspension gives both countries an opportunity to agree on a trade deal. If the interim agreement is not reached on time, the imposition of these duties could impact India's exports.

Challenges and prospects

The trade agreement between India and the US is economically and strategically important for both countries. India's tough stance, especially in the agriculture and dairy sector, is to protect domestic interests. On the other hand, the US wants better market access for its products from India. Striking a balance between the two sides will be the key to the success of this agreement.

The official said that talks are still going on on the possibility of an interim agreement before August 1. Further progress on these issues is expected in the next meeting in August. This agreement will not only strengthen trade relations, but can also give a new direction to the strategic partnership between the two countries.