India official says engaged with US for mutually beneficial deal

India official says engaged with US for mutually beneficial deal

With the August 1 deadline looming, the fate of the India-US trade deal remains uncertain. Despite ongoing negotiations, the possibility of a deal being finalized before the deadline is slim, according to recent statements from both sides.

US President Donald Trump has hinted at tariffs of 20-25% on Indian goods if a deal is not reached. The US administration has indicated that more negotiations are needed before a trade deal can be sealed. India, on the other hand, expects to face higher US tariffs on specific export products as a temporary measure [1].

The primary sticking points in the negotiations are the agriculture and dairy sectors. The US seeks greater market access, while India has been reluctant to open these sensitive sectors. India's Commerce Minister Piyush Goyal has emphasized the need for preferential market access over competitors [2].

Both sides aim to finalize a comprehensive trade agreement by September or October, covering sensitive areas like agriculture and dairy. The trade negotiations have been ongoing, with five rounds of talks already held. A sixth round is scheduled for August 25, when a US delegation will visit India for further discussions [2].

Despite the uncertainty, both nations recognize the strategic importance of a strong economic partnership. The total bilateral goods trade between the US and India is expected to reach around $129 billion this year, with India maintaining a trade surplus of nearly $46 billion [2].

References:
[1] https://timesofindia.indiatimes.com/business/india-business/india-us-trade-deal-will-india-face-20-25-trump-tariff-from-august-1-top-10-things-to-know/articleshow/122996729.cms
[2] https://dmarketforces.com/august-1-deadline-for-india-us-trade-deal-or-face-higher-tariffs-trump/