India-US set to ink mini trade deal soon
India and the United States have ‘almost’ finalised a mini trade deal after weeks of hectic and hard-fought negotiations, even as both sides continue to work on the larger free trade agreement that will be finalised later this year, ThePrint has learnt.
A person familiar with the matter said that New Delhi has agreed to specific demands from Washington D.C. to include certain agricultural products and dairy products, which are not produced commonly in India, in the deal.
Other areas that are set to see tariff cuts on New Delhi’s end will likely include American automobiles. US President Donald Trump has publicly criticised India’s high tariff on foreign-made automobiles.
A negotiating team from the Ministry of Commerce and Industry reached the US earlier Monday for meetings with counterparts. Rajesh Aggarwal, India’s chief negotiator and special secretary in the ministry, is reportedly set to arrive in Washington Wednesday for the final leg of negotiations.
Another person familiar with the matter confirmed to ThePrint that the final announcement of the deal depends on Washington and Trump. So far, the White House has maintained that the deal between the two countries is nearing the finishing line.
Talks so far
The mini trade deal has been under negotiation since Trump first announced his intention to impose additional tariffs on a number of countries that the US has a trade deficit with. India exports roughly $77 billion worth of goods to the US, importing around $42 billion from the world’s largest economy.
In February, Prime Minister Narendra Modi and Trump had announced during the former’s two-day visit to the US that the “first tranche” of a larger bilateral trade deal would be announced by fall 2025.
However, the impetus for a deal grew as the US administration decided to impose tariffs on nearly every country in the world, with Trump looking to cut America’s trade deficit. He has consistently railed against India’s tariffs on goods from the US.
The deal is unlikely to include any language on genetically modified crops, which is said to be a red line for India. However, New Delhi in the past has demurred from signing any agreement that could impact its agricultural and dairy sectors.
For example, in the ongoing negotiations with the European Union for a free trade agreement, the two sides have arrived at an agreement to leave dairy outside the purview of the final deal. But any change in India’s position on this with the US could impact the future of the EU deal.
Secretary of Commerce Howard Lutnick has pushed India to open its agricultural sector to US products, asserting that the sector cannot remain closed. He has held multiple meetings with India’s Minister of Commerce and Industry Piyush Goyal.
Facing pushback on global tariffs, Trump had agreed to pause the additional tariffs for 3 months in April. The deadline for the pause elapsed on 9 July. He, however, announced that nations will be given a further extension till 1 August to negotiate a mini deal with the US.
The deal with the US would be the second major trade agreement for India this year. Modi is set to travel to the United Kingdom on 23 July to sign the FTA with London. The other deal New Delhi hopes to complete by the end of this year is the comprehensive trade agreement with the EU.
The deal with the UK, does not include sensitive products such as dairy, cheese and apples. However, India has agreed to reduce its duties in British spirits and gin.
Source : Dairynews7x7 July 17th 2025 The Print by Keshav Padmanabhan (Edited by Mannat Chugh)