Negotiations for the proposed India-US trade agreement are advancing steadily, with both countries aiming to finalize an initial segment of the deal—referred to as the "early tranche"—before the critical deadline of July 9, 2025.

Commerce Secretary Sunil Barthwal confirmed that Indian and US trade teams have been engaging in intensive discussions, including reciprocal visits (the US team visited India from June 5 to 11), and ongoing virtual meetings to maintain momentum and continuity in the negotiations.

A central focus of these talks is to secure an agreement on tariff reductions and enhanced market access. India is particularly seeking a full exemption from the additional 26% reciprocal tariff that the US imposed on Indian goods on April 2, 2025, but which was suspended for 90 days until July 9.

The baseline 10% tariff imposed by the US remains in effect, and India is pushing for a return to pre-April 2 tariff levels, especially for its labour-intensive exports. In exchange, India is considering offering concessions on American automobiles and certain agricultural products.

Both sides are working under tight timelines, as the lapse of the US Fast Track Trade Authority (also known as Trade Promotion Authority, or TPA) since 2021 introduces additional complexity. The Fast Track Authority previously empowered the US President to negotiate trade agreements and present them to Congress for a straightforward up-or-down vote, without the risk of amendments or procedural delays.

Without this authority, any trade agreement reached by the President is now subject to potential Congressional scrutiny, amendments, delays, or even rejection. This internal US procedural challenge means that, while Indian officials are optimistic about concluding the initial tranche on time, the absence of TPA could still prolong or complicate the final stages of the agreement.

Despite this, both governments have expressed confidence in their ability to reach an agreement within the set timeline. Additional Secretary L Satya Srinivas noted that legal and documentation work is underway, with the aim to complete all necessary processes within three months of concluding negotiations. The next date for in-person negotiations has not been finalised, but virtual discussions continue without interruption.

Beyond the US, India is also accelerating its trade negotiations with the European Union, with the next round scheduled for July 7 in Brussels. The frequency and intensity of these talks have increased, reflecting a broader push by India to secure favourable trade agreements with key global partners.

While significant progress has been made in the India-US trade talks, and both sides are targeting an initial deal before July 9, the absence of the US Fast Track Trade Authority remains a potential hurdle. 

The outcome will depend on how US authorities choose to navigate their domestic legislative processes, but the commitment to ongoing engagement and the positive tone from both sides suggest cautious optimism for a timely resolution.

Based On A News18 Report