New Delhi, June 8: Trade negotiations between India and the United States have been extended into next week as both sides strive to finalize a limited trade agreement before a July 9 deadline, according to people familiar with the matter.
A U.S. delegation led by Assistant U.S. Trade Representative Brendan Lynch held two days of intensive discussions in New Delhi with Indian officials headed by chief negotiator Rajesh Agrawal. Talks, which were originally scheduled to conclude on Friday, will now continue through Tuesday, officials said.
“The discussions are positive and progressive, and moving in the right direction,” a person directly involved in the negotiations told Reuters, adding that more American officials were expected to join the talks over the weekend.
The two sides are seeking consensus on reducing tariffs and easing non-tariff barriers in sectors such as agriculture, automobiles, and industrial goods. The interim deal, if reached, could help prevent the reimposition of a 16% reciprocal tariff on Indian goods, set to take effect on July 9.
Negotiators are working under the framework of a broader Bilateral Trade Agreement (BTA), building on commitments made during a February meeting between U.S. President Donald Trump and Indian Prime Minister Narendra Modi. The leaders agreed to conclude a trade pact by fall 2025 and set a goal of doubling two-way trade to $500 billion by 2030.
While both sides have expressed optimism, sticking points remain. India is pushing back against U.S. demands to open its agricultural and dairy markets, citing potential harm to small-scale farmers. Officials in New Delhi also said they are prepared to pursue their complaints at the World Trade Organization over U.S. tariffs on Indian steel and aluminium, even as they seek a bilateral solution.
“The deal must be mutually beneficial. All trade-related concerns, including tariff hikes, need to be addressed holistically,” said a second Indian official.
The urgency of the talks is underscored by trade data showing a sharp rise in Indian exports to the U.S., which surged 28% year-on-year to $37.7 billion in the January–April period. Imports from the U.S. totaled $14.4 billion, widening India’s trade surplus. Indian exporters have reportedly delayed shipments in recent weeks, uncertain whether goods will arrive in time to avoid the July 9 tariff hike.
In a separate development, India has approved a commercial licence for Elon Musk’s Starlink satellite internet service, despite the entrepreneur’s public disagreements with President Trump.
Speaking from Italy, Commerce Minister Piyush Goyal said talks were “moving well” and reaffirmed India’s commitment to securing an equitable agreement. He noted that the complex nature of tariff issues, particularly in sensitive sectors like steel and automobiles, was contributing to the extended timeline.
The ongoing talks are seen as a key moment in the evolution of India-U.S. trade ties, which have witnessed a series of tariff disputes in recent years. Officials said both countries remain committed to forging a long-term agreement that strengthens economic cooperation and supply chain resilience.
