India-US Mini Trade Deal In 48 Hours, High-Stakes Talks On In Washington

July 3, 2025: India-US Mini Trade Deal – An interim trade agreement between India and the United States is expected to be finalized within the next 48 hours, sources told, as trade negotiators from both sides engage in last-minute talks in Washington. The Indian delegation has extended its stay in the US capital in an effort to resolve critical sticking points ahead of the looming July 9 deadline, when a new round of higher US tariffs is set to take effect.

At the heart of the negotiation are sharp differences over key trade issues. The US is reportedly pressing India to open its markets to genetically modified (GM) crops—a long-standing red line for New Delhi due to concerns over food safety, environmental impact, and risks to small farmers.

Additionally, Washington is seeking greater access to India’s agricultural and dairy markets. However, Indian officials have resisted these demands, citing the potential threat to rural livelihoods and food security.

On its part, India is pushing for meaningful tariff concessions on its labour-intensive exports—such as garments, leather goods, and footwear—which play a significant role in job creation. Indian negotiators have been firm that any interim deal must include reciprocal benefits and address the need for sectoral market access.

Sources told NDTV Profit that the deal’s scope has been narrowed down to a focus on mutual tariff reductions or removals, with both sides hoping to avoid a breakdown in talks.

India has reportedly cautioned the US that without broader concessions, particularly on high-employment sectors, achieving the ambitious goal of doubling bilateral trade to $500 billion by 2030 would be unfeasible.

Trade analysts say that while a full-scale free trade agreement remains elusive, a well-balanced interim pact could set the stage for deeper economic engagement between the two nations, both of which are looking to diversify their trade ties amid shifting global supply chains.

The next 48 hours will be crucial, as the window to avert new tariffs narrows and both sides weigh political and economic trade-offs.