However, efforts are on to stitch the trade deal before July 9, when 26% reciprocal tariffs by the Donald Trump administration will come into effect, they added. “We are hopeful of a deal…But there would be no compromise on the interests of Indian farmers,” one the persons told ET.
“India’s stance in these areas is very clear,” said another person. “There are red lines that will not be crossed”.
India’s trade negotiators extended their stay in Washington, beyond the scheduled two-day visit ending June 27, as talks with the US government stretched on.
“The talks are at a critical juncture,” said a third person, adding that the deal could also be in multiple phases with certain details following later.
Trump had on April 2 announced a reciprocal tariff of 26% on goods imports from India as part of the administration’s trade levies on many countries. The tariffs were paused for 90 days until July 9. However, the baseline tariff of 10% will stay in force even if the reciprocal tariffs are lifted after a trade deal.
The US wants to be able to sell GM crops and cattle feed to India, a sensitive issue for New Delhi. These segments are difficult and challenging areas for India as local farmers are mostly into sustenance farming and have small land holdings. Washington, on its part, is not willing to lower tariffs below the baseline 10%. “There are certain non-negotiables for India which it has told the US,” an official said.
The commerce and industry ministry has already informed domestic exporters and industry that talks are on to finalise the first phase and that there would be more phases.
