Informist, Monday, Aug. 18, 2025

NEW DELHI – The next round of negotiations between India and the US for the Bilateral Trade Agreement, expected to begin Aug. 25, has been postponed without a new timeline, a commerce ministry official said. The two sides have held five rounds of negotiations so far.

While the commerce ministry official said the next round has been "rescheduled", US President Donald Trump had said earlier this month that the talks have been paused. The commerce ministry official said a new schedule for the sixth round has not been intimated.

The two sides have likely reached a stalemate due to disagreements over the farm sector. Trump wants access to India's politically and socially sensitive farm sector under the trade pact. The US also wants to push genetically modified crops and dairy products into India. New Delhi is unwilling to yield to these demands.

The deal, first proposed in February, was initially seen as a cushion against Washington's reciprocal tariffs. But the US has already imposed 25% tariff on Indian goods and also announced the levy of an additional 25% duty from Aug. 27 for India's purchases of Russian energy.

With the announcement of tariffs and a delay in the negotiations, Indian exports are likely to suffer a setback with shipments to the country's top export destination becoming more expensive. The US accounts for nearly 20% of India's total exports. India had exported goods worth $86.51 billion to the US in the financial year 2024-25 (Apr-Mar) and had a trade trade surplus of $40.82 billion. End

US$1 = INR 87.35

Reported by Krity Ambey

Edited by Rajeev Pai

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