A high-level US trade delegation will arrive in New Delhi on August 25 for the sixth round of bilateral trade talks, as both countries race to hammer out an interim agreement before the August 1 deadline — the day when a suspension on US tariffs officially expires.
After last week’s fifth round of discussions in Washington, led by India’s chief negotiator Rajesh Agrawal and US Assistant Trade Representative Brendan Lynch, the stakes have only grown higher. The immediate goal: secure a limited deal that would prevent steep duties from snapping back into effect on key Indian exports such as steel, aluminium, and automotive components.
While the US is pressing hard for greater access to India’s agriculture and dairy sectors — areas traditionally shielded by New Delhi — Indian negotiators are holding the line, mindful of domestic farmer unrest and political sensitivities. Several farmers' unions have warned the government against compromising on agriculture, demanding the sector be kept out of the agreement.
India, on its part, is pushing for the rollback of a hefty 26% additional duty and seeking enhanced access for labour-intensive industries like textiles, leather, chemicals, and select farm products.
Though the broader contours of a bilateral trade agreement (BTA) are expected to take shape by September or October, the urgency is focused on clinching the first phase of the deal before new tariffs strike. Both nations remain engaged but divided — balancing economic ambition with domestic caution.