Indian Negotiators Extend Washington Stay to Push for Interim Trade Deal with U.S.

 Indian Negotiators Extend Washington Stay to Push for Interim Trade Deal with U.S.

New Delhi/Washington, July 1 – With time running out on the current pause in reciprocal tariffs, Indian trade negotiators have extended their stay in Washington to push for a breakthrough in talks with the United States. The aim: to iron out key differences and finalize an interim trade agreement that’s been in the works for years.

The urgency comes as the U.S. recently wrapped up trade talks with China — which began much later than those with India — resulting in a significant thaw in tensions. Indian officials are hoping to avoid falling behind in securing improved market access and stable trade terms.

The July 9 deadline for the tariff truce is fast approaching, and negotiators are under pressure to resolve longstanding issues, especially around agriculture. India is seeking the removal of additional duties imposed by the U.S. on products like steel, aluminum, and auto parts, along with guarantees that no new tariffs will be introduced down the line. In return, Washington wants India to open its market more widely — from whisky and cars to agricultural goods like apples, corn, and soybeans.

Behind the scenes, both sides have been locked in complex talks. During recent discussions held in India, officials touched on textile trade rules — with India seeking the kind of tariff concessions the U.S. offers to its free trade partners. Labour-intensive sectors such as footwear and garments are high on India’s priority list.

However, agriculture remains the most contentious area. The U.S. is pushing for entry of genetically modified (GM) crops and demanding India ease rules that restrict imports of dairy products from animals fed with internal blood meal — something India has long opposed on ethical and religious grounds.

Finance Minister Nirmala Sitharaman emphasized this point in a recent interview, saying agriculture and dairy are “very big red lines” for India. “Yes, we would love to have an agreement — a big, good, beautiful one. Why not?” she said, but cautioned that India’s core interests must not be compromised.

On the political front, pressure is mounting from domestic groups. Ashwani Mahajan, co-convener of the Swadeshi Jagaran Manch, voiced strong opposition to U.S. demands, stating, “India’s agriculture and small industries cannot be sacrificed. How can we allow GM foods or non-vegetarian dairy into the country just to please America?”

Despite these challenges, Indian officials say that expanding strategic ties with the U.S. — including in areas like oil and defense procurement — could help reduce the growing trade imbalance, and potentially serve as a bargaining chip in the ongoing negotiations.