New Delhi: Indian officials have extended their stay in Washington as last-minute negotiations intensify to secure a trade agreement with the United States before a critical July 9 deadline. The talks, originally scheduled to conclude on June 27, continued into an extra day as both sides pushed to resolve lingering issues, according to sources familiar with the discussions.
The extension has fueled speculation that the two nations are close to finalizing an interim trade deal. Sources, who spoke on condition of anonymity due to the sensitive nature of the negotiations, told Bloomberg that the prolonged discussions signal meaningful progress.
At the center of the talks is a bid to avoid a renewed imposition of higher US tariffs on Indian exports. The 90-day pause in these tariffs, granted earlier by the US, is set to expire on July 9, creating urgency for a resolution.
One major sticking point remains the US push for India to allow imports of genetically modified (GM) agricultural products. Indian negotiators have firmly resisted the demand, citing risks to domestic agriculture and food security. India maintains that such a move could negatively impact its small and marginal farmers.
Conversely, India is pressing for a broader deal that includes sector-specific market access as well as the rollback of existing US tariffs on Indian goods. New Delhi seeks to ensure that any agreement benefits key Indian industries such as textiles, pharmaceuticals, and automotive components.
Despite the complexities, recent remarks from former US President Donald Trump have raised hopes. Speaking last week, Trump said a “very big” agreement with India could soon be finalized, indicating optimism from the American side.
With the deadline looming and the economic stakes high, both sides are working against the clock to seal a deal that could reset bilateral trade relations and avert further strain. If successful, the agreement would mark a major breakthrough in India-US economic ties, which have seen tensions over tariffs, technology access, and market barriers in recent years.
