New Delhi/Washington DC | July 10, 2025 – Bharat Global Time
The much-anticipated India–US trade agreement has hit another speed bump. Both nations have formally agreed to extend the deadline for the deal until July 31, after failing to finalize key terms during the latest round of negotiations held this week in Washington.
While officials from both sides tried to strike a hopeful tone, behind closed doors, differences over tariffs, digital trade, and agricultural access remain unresolved.
“Talks were productive but complex,” said India’s Commerce Minister. “We’ve made progress, but some sensitive issues still require more time.”
What’s Holding the Deal Back?
1. Digital Trade & Data Localisation
The U.S. is pushing for free cross-border data flows and reduced restrictions on American tech giants, while India remains firm on its data localization policy to protect user privacy and digital sovereignty.
2. Tariff Reductions
India wants the U.S. to remove tariffs on steel, aluminum, and certain pharma exports, while Washington is asking India to cut duties on American dairy, wine, and tech products.
3. Agricultural Access
America wants greater access to India’s agri-market, especially for pulses, nuts, and processed foods, but India is treading cautiously due to farmer concerns and WTO obligations.
What the Officials Say
“This is a technical delay, not a breakdown,” said a USTR spokesperson.
“We’re optimistic about a strong, balanced deal before July 31st,” an Indian diplomat told Bharat Global Time.
Sources say both countries are keen to avoid public embarrassment and are under pressure from industry lobbies on both sides to reach a workable deal soon.
Why This Deal Matters for India
A successful agreement could:
- Open up new export channels for Indian pharma, textiles, and software
- Boost foreign investment in India’s manufacturing sector
- Help India counterbalance China’s trade aggression
- Strengthen the Indo–US strategic partnership, especially ahead of the Quad summit in September
What’s Next?
- Another ministerial-level meeting is scheduled in mid-July.
- Final draft agreement is likely to be shared with media by July 28–29, if all goes well.
- Both sides are expected to sign the deal before PM Modi and President Biden meet again at the G20 side event in early August.
The Bigger Picture
This is not just about trade—it’s about the global balance of power.
With growing concerns over China’s economic bullying, both Washington and New Delhi are eager to lock in a trust-based, resilient trade framework.
But the path to that handshake is proving longer than expected.
Stay tuned with Bharat Global Time for exclusive updates, expert breakdowns, and behind-the-scenes insights on India’s most strategic global negotiations
