India, US Eye Interim Trade Pact Before July 8

India-West News Desk

NEW DELHI — India and the United States are likely to finalize an interim trade agreement before July 8, as New Delhi pushes for a full exemption from the additional 26% reciprocal tariff imposed by Washington earlier this year, according to media reports citing unnamed Indian officials.

India is negotiating to shield its sensitive sectors — such as agriculture and dairy — from the impact of greater market access. The official suggested this could involve introducing quotas or setting minimum import prices to protect domestic producers.

While the rollback of the baseline tariffs requires U.S. Congressional approval, the administration retains the authority to lift the additional reciprocal tariffs for several countries, including India.

The US had announced the 26% tariff on Indian goods on April 2 but temporarily suspended its implementation for 90 days — a grace period that ends on July 9. Meanwhile, the original 10% baseline tariff on Indian exports remains in effect.

Both nations have also agreed to wrap up the first phase of a broader trade agreement by September or October this year. The long-term goal is to more than double bilateral trade volumes to $500 billion by 2030.

Despite ongoing hurdles — particularly India’s strict regulatory stance on genetically modified crops — New Delhi has expressed willingness to import select non-GM agricultural products from the U.S., such as alfalfa, as part of the discussions, it is reported.