India is looking forward to finalizing an interim trade agreement with the US. This is set to be the first interim deal with a major US trading partner. Between Washington and New Delhi, it will be an initial step towards a comprehensive bilateral accord.
New Delhi is curious about the issue of market access in agriculture, genetically modified crops, and dairy. The trade pact talks between the two countries are at a crucial stage.
India's trade negotiators extended their stay in Washington, beyond the scheduled two-day visit ending June 27, as talks with the US government stretched on.
ET earlier reported today that efforts are on to stitch the trade deal before July 9, when 26% reciprocal tariffs will come into effect, they added. "We are hopeful of a deal...But there would be no compromise on the interests of Indian farmers," one of the persons said.
"India's stance in these areas is very clear," said another person. "There are red lines that will not be crossed".
The US wants to be able to sell GM crops and cattle feed to India, a sensitive issue for New Delhi. As local farmers are mostly into sustenance farming and have small land holdings, these segments are difficult and challenging areas for India. Washington, on its part, is not willing to lower tariffs below the baseline 10%. "There are certain non-negotiables for India which it has told the US," an official said.
