India-US trade negotiations have hit an impasse over agricultural demands, with New Delhi refusing concessions on dairy – a sector supporting 80 million livelihoods – sources familiar with the talks told Media. “There is no question of conceding on dairy. That’s a red line,” a senior Indian official stated.
Special Secretary Rajesh Agarwal has extended his Washington stay to break the deadlock as talks enter their seventh day. External Affairs Minister S. Jaishankar is also scheduled to meet U.S. counterpart Marco Rubio diplomatically this week.
India seeks duty waivers for labor-intensive exports including textiles, gems, leather goods, shrimp, and agricultural products like grapes and bananas. An official noted these concessions “do not hurt any domestic interests in the US.” The interim pact aims to avert reinstatement of 26% U.S. tariffs on Indian goods after July 9 – a deadline suspended temporarily in April but with 10% baseline tariffs still active.
PTI reported an official warning: “If talks fail, the 26% tariffs will come into force again.” The U.S. demands market access for agriculture, dairy, EVs, wine, and GM crops – demands India resists to protect smallholder farmers.
Both nations target concluding the first phase of a Bilateral Trade Agreement (BTA) by September-October, aiming to double bilateral trade to $500 billion by 2030 from the current $191 billion. The interim deal is positioned as a stepping stone toward this goal.