Archive · 2 Jun 2025
Full India-US Trade Deal Unlikely Soon, Partial Pact Possible
India and the US are talking about a big trade deal, but it's taking longer than expected.
The former Indian ambassador to the World Trade Organization thinks a full deal won't happen soon because of disagreements.
They have different ideas about things like tariffs and rules for goods.
India might lower its taxes on some goods, but it wants the US to be fair too.
One area of disagreement is the food industry, where India has stricter rules.
Even though a complete deal is far off, they might agree on some smaller deals in the meantime.
It all depends on if both sides are willing to compromise.
A full trade deal between India and the US is unlikely before Trump's expected visit.
Persistent gaps exist in non-tariff barriers, rules of origin, and customs facilitation.
A narrower goods agreement is possible, potentially with India lowering tariffs.
India seeks 'forward MFN' treatment, but the US has shown little interest in mutual concessions.
A partial agreement is achievable, with India reportedly making offers on many tariff lines.
- Who
- Jayant Dasgupta, former Indian ambassador to the World Trade Organization
- What
- Negotiations for a trade deal
- When
- A full trade deal unlikely before Trump's visit later in the year
- Where
- India and the United States
- Why
- To establish a comprehensive trade agreement between the two countries
India's Stance
US's Stance
Market Access
India's Stance
India wants 'forward MFN' treatment from the US, meaning any future concessions it gives to another country would automatically extend to the US, and vice-versa.
US's Stance
The US wants India to lower tariffs, but India is requesting mutual concessions, including 'forward MFN' treatment where any concessions given to other countries extend to the US.
Dairy & Poultry
India's Stance
India is insisting on specific certification requirements for US dairy and poultry products.
US's Stance
The US has raised concerns with India's restrictions and certification requirements on dairy and poultry products.
- Full Deal Timeline
- Unlikely before Trump's visit
- Type of Deal
- Goods agreement possible
- India's Current Average Tariff
- Approximately 14%
- Potential Tariff Reduction
- Approximately 10%
- India's reported offer percentage
- 90%