NEW DELHI, 27 June 2025: As trade talks between India and the United States reach a critical juncture, India must firmly defend its agricultural sector, digital ecosystem, and regulatory autonomy, warns economic think tank Global Trade Research Initiative (GTRI).
With India’s chief trade negotiator currently in Washington DC and a July 9 deadline looming, the window for finalising an interim pact is rapidly closing. This date marks the end of US President Donald Trump’s 90-day tariff suspension—originally declared on April 2.
“The more likely outcome is a limited trade pact—styled after the US-UK mini trade deal announced on May 8,” said GTRI Founder Ajay Srivastava. “But any trade deal with the US must not be politically driven or one-sided. It must protect our farmers, our digital ecosystem, and our sovereign regulatory space.”
According to GTRI, such a mini or interim deal may see India cutting tariffs on a wide range of US industrial goods, including automobiles—a long-standing demand from Washington.
On agriculture, India may offer selective market access via tariff reductions and tariff-rate quotas (TRQs) on products such as ethanol, almonds, walnuts, apples, raisins, avocados, olive oil, spirits, and wine. These measures, however, must be weighed against the interests of Indian farmers, GTRI cautioned.
The think tank also highlighted broader US expectations—pushing India for large-scale commercial procurements like oil and LNG, aircraft from Boeing, military helicopters, and even nuclear reactors.
“There may also be pressure on India to ease FDI restrictions in multi-brand retail—potentially benefiting Amazon and Walmart—and to relax rules on importing remanufactured goods,” Srivastava said.
GTRI underlined that agricultural products constitute less than 5% of total US exports to India, suggesting that heavy compromises in this sector may not be justified economically.
As negotiations intensify, India’s position in the global trade landscape hinges on how well it balances market access with domestic priorities.
