U.S.-India on brink of concluding mini trade agreement within ensuing 48 hours, according to CNBC-TV18's reports
India is on the brink of finalizing a mini trade deal with the United States, according to a report shared by CNBC-TV18. The deal, which is expected to be finalized within the next 24 to 48 hours from July 6, 2025, aims to boost bilateral trade, particularly in labor-intensive sectors such as textiles, leather, footwear, and garments.
The deal includes annual quotas for lower tariffs on select Indian products, offering them more competitive access to the US market. The average tariff level under this agreement is expected to be around 10%. India may also offer tariff reductions on a limited range of US agricultural imports, specifically pecan nuts and blueberries.
However, India has firmly declined to reduce tariffs on sensitive commodities such as wheat, rice, maize, dairy, and genetically modified crops, which remain red lines for New Delhi on food safety and farmer livelihood grounds. India’s stance on automobile tariffs remains consistent with its positions in other ongoing free trade negotiations, implying limited concessions in this area.
Broader and more comprehensive bilateral trade negotiations are expected to resume after July 9, 2025, following this interim mini deal. The mini trade deal is viewed as an "early harvest" agreement that could pave the way for more expansive trade agreements later this year.
The urgency is tied to a July 9 deadline for tariff-related decisions from the US side. The exact nature of the mini trade deal is not specified, but it is clear that both countries are committed to finding a balanced solution that benefits Indian labor-intensive exports and selective US agricultural products, while protecting sensitive sectors for both countries.
Negotiations on the larger trade deal will begin after July 9, and more details about the timing and terms of these negotiations are expected to be announced in due course. The mini trade deal between India and the United States is a significant step forward in strengthening bilateral trade relations and fostering economic growth for both nations.
The mini trade deal between India and the United States, set to be finalized within the next 24 to 48 hours, includes annual quotas for lower tariffs on select Indian products, providing them with more competitive access to the US market. The agreement also involves potential tariff reductions by India on limited US agricultural imports, such as pecan nuts and blueberries.
