India and the US are very close to sealing a mini-trade deal. Talks at the negotiator level are likely over. Now, all eyes are on Prime Minister Narendra Modi and US President Donald Trump to give the final green signal.
A source close to the talks said, “The two sides have done the talking, now it is a political call. The deal announcement depends on the schedule of both leaders.”
Why Is This Deal Important?
India has been under pressure due to steep tariffs announced by Trump earlier. These tariffs were paused for 90 days in April. But they could come back on July 9. India wants to avoid that.
At the same time, India wants better access to the US market for its products like textiles, leather, and footwear. These are labor-heavy sectors that provide jobs to many Indians.
In return, the US wants India to allow imports of some genetically modified (GM) farm products used in animal feed. India has shown some flexibility here but is still firm on protecting its dairy and agricultural sectors.
What’s Happening Now?
India’s negotiation team, led by Commerce Ministry’s Rajesh Agarwal, has been in the US since June 27. They had long discussions with the United States Trade Representative (USTR). This came after earlier talks between June 5-10 in Delhi.
Now, negotiators have wrapped up the deal from their side. The next step is a final decision from Modi and Trump.
A source told Moneycontrol that a deal announcement could happen as soon as this weekend, or at least before July 9.
Trump’s Tariff Threat Looms Large
On July 4, Trump said that his team will start sending letters to countries, including India, about new tariff rates. These letters will go out from Friday. Countries will have to start paying these tariffs from August 1.
This puts pressure on India to close the deal fast.
A Mini Deal Before a Bigger One
This is only the first step. India and the US are working on a full Bilateral Trade Agreement (BTA) that may be completed by fall this year.
So, this mini-deal is just a teaser of what’s coming next.
What’s Next?
If both leaders approve, we may hear the official announcement any day now. If not, the return of Trump’s tariffs could hurt Indian exports.
One thing is clear: This deal is not just about trade. It’s about trust and timing.
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