As India–US bilateral trade negotiations enter their final phase, discussions have become increasingly complex, with sensitive issues arising in dairy, agriculture, digital, and medical services.
According to a Mint report, the US is pushing aggressively to open these sectors, while India seeks a more equitable agreement that protects domestic priorities.
The talks, held in New Delhi from 4 to 10 June, were led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia.
Though part of the US delegation has returned, others remain in India, pressing for firm commitments on market access.
Negotiations are now expected to continue virtually, as both sides aim to finalise an agreement before the 8 July expiry of a 90 day pause on reciprocal US tariffs.
India has long resisted liberalising the dairy and agriculture sectors, citing social sensitivities and potential market disruptions.
A source quoted in the report said talks have not progressed as initially envisioned.
“The negotiations are not progressing as expected. The talks were meant to be two-way, as agreed. However, the US team’s insistence on opening certain critical sectors comes across as a take-it-or-leave-it offer,” the person was quoted as saying by Mint.
A major sticking point remains US dairy exports. India has made it clear that unless the US alters its non-vegetarian animal feed practices or complies with India’s vegetarian certification norms, products like cheese and butter will be denied entry.
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However, New Delhi may consider tariff cuts on selected imports such as nuts and fruits.
The urgency is heightened by the threat of a 10 per cent universal tariff and an additional 16 per cent country-specific US duty on Indian exports.
Officials say the US approach veers from the 13 February joint pledge for a “mutually beneficial” trade pact by autumn 2025.
Still, Indian officials remain optimistic. “It’s not that it can’t be done, it’s possible, as both countries are in favour of it. In fact, India was the first country to be offered a trade agreement. We are trying our best to make it happen and keep the trade dialogue on track,” a person aware of the developments told Mint.
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