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Informist, Tuesday, Dec. 16, 2025

 

--Govt source: India-US trade deal now hinges on ministerial intervention

--Govt source: Negotiator-level talks for India-US trade deal concluded

--Govt source: Washington softened demand for access to Indian farm sector 

 

By Krity Ambey

 

NEW DELHI – The chief negotiators from India and the US have concluded their discussions on the proposed Bilateral Trade Agreement, a commerce ministry official said. The remaining issues now require intervention at the ministerial level, including the commerce minister and the prime minister, the official added.

 

While the official did not specify the subjects that need ministerial intervention, he said Washington continues to press for concessions on certain crops under the trade deal. "Their demand has mellowed, but they have asked us to consider granting market access for at least some crops," the official said.

 

New Delhi is willing to offer concessions on crops such as almonds and pecan nuts, according to the official. "Any decision to expand this list can only come from the ministers (the commerce minister and the prime minister)," he said. Edible nuts accounted for nearly 3% of India's total imports from the US at $45.63 billion, in 2024–25 (Apr–Mar).

 

Earlier, the US had sought access to India's politically and socially sensitive farm and dairy markets and had indicated its intention to push genetically modified crops into the country. These demand led to an impasse in the trade talks in August after four rounds of negotiations. The same month, the White House imposed a 50% duty on Indian goods.

 

Negotiations resumed in September, followed by visits from officials on both sides, the latest being Deputy US Trade Representative Rick Switzer's visit to New Delhi, which concluded last week. The official said that unless ministerial intervention helps close the deal this month, the next meeting between negotiators is likely only after the holiday season in January. That interaction, too, will not constitute a formal negotiation round.

 

The commerce ministry has repeatedly emphasised that none of the interactions since September qualify as formal negotiation rounds. Another ministry official said a formal round follows a specific protocol under which the discussion topics are identified and exchanged in advance. The discussions on the US trade deal over the past three months have not followed this protocol.

 

On Monday, Commerce Secretary Rajesh Agrawal said India and the US are very close to an interim framework agreement to address New Delhi's concern over the 50% tariff. However, Agrawal declined to give any timeline for signing the agreement. Both the sides had earlier set a target to conclude the first tranche of the deal by fall 2025.

 

Meanwhile, the 50% tariff continues to cast a long shadow over more than $50 billion worth of Indian shipments from labour-intensive sectors such as textiles, gems and jewellery, marine products, and furniture and bedding. In FY25, India exported $86.51 billion worth of goods to the US, one-fourth of India's total exports in the year, and had a trade surplus of $40.82 billion with the country.  End

 

US$1 = INR 91.02

 

Edited by Akul Nishant Akhoury

 

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