Dairy, agriculture impede India-U.S. bilateral trade deal

• India and the U.S. are trying to finalize a trade deal before the July 9 deadline to avoid reimposition of reciprocal tariffs.

• Agriculture and dairy remain key unresolved issues due to their sensitive nature for India.

India Cautious, Not Rushed

• Government sources stress India is keen but not desperate to meet the deadline.

• Missing the deadline would mean a return to earlier tariff levels (April 2)—not a major setback.

• Talks include a possible “mini deal” and the first tranche of the Bilateral Trade Agreement (BTA).

• An Indian team will travel to the U.S. soon for the next round of in-person discussions.

• Iran’s attacks on U.S. bases in Syria have made the regional situation more serious.

• India is monitoring potential trade impacts, especially risks to shipping via the Strait of Hormuz.

• Alternative routes are available but would raise shipping time and costs.