Trade officers from India and the US have paved their position on some important issues in the racing of an interim deal before higher American rates are set in July, said people who are familiar with the matter.
Negotiators of both parties, who met this week in New Delhi, wriggled over issues, including an American requirement that India opens its market to genetically modified crops, said officials in New Delhi and asked not to be identified because the discussions are private.
The US also wants India to eliminate rates and facilitates price controls on medical devices and relaxing rules for the localization of data, which requires storage of data on local servers, the people said.
New Delhi insists on the US to release India from existing sectoral rates on steel and cars and endangered mutual rates that are planned to start on July 9, people said. India also wants to be exempt from proposed tasks on medicines, they said.
US President Donald Trump has started research in the pharmaceutical sector under section 232 of the Trade Expansion Act, a precursor of higher rates. He had used the 232 probes section, which looks at the implications of the national security of imports in critical sectors, to impose rates on steel, aluminum and cars and his components.
The India’s Ministry of Trade and the industry did not immediately respond to an e -mail looking for information.
Handels analysts say that the difficulty maintained by both parties should not derail the deal, but will certainly extend the negotiations. India also seems to give up more about rates than the US, according to Ajay Srivastava, founder of the New Delhi -based think tank Global Trade Research Initiative. India lowers its most beneficiary national rates, while the US has not offered to do the same, and is also imposed on the 10 percent baseline tariff residues for all nations.
“India should only close a deal if it is in balance,” said Srivastava. “A small deal is very possible, but there should be no pressure, because India does not have much to lose, even if the deadline is missed.”
An American trade team led by Brendan Lynch, assistant-American trade representative, met officials in New Delhi on 5-10 June, where both parties agree to speed up conversations to conclude an agreement that said ‘early victories’, said Indian officers earlier this week.
Prime Minister Narendra Modi, who will go to the Seven Summit group in Canada in Canada in the coming days, can also have the opportunity to promote trade conversations with Trump while he is there.
India and the US are working on a phased trade agreement with an early agreement aimed at July.
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Published on June 13, 2025
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