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Union Commerce and Industry Minister Piyush Goyal has responded to questions about the trade agreement with the US.
Piyush Goyal told reporters, "India discusses on its own terms. Negotiations are going on with many countries like the European Union, New Zealand, Oman, the US, Chile, Peru."
He said, "A free trade agreement is possible only when there is a two-way benefit. If a good deal is made while protecting India's interests, we are always ready to deal with developed countries."
The Commerce and Industry Minister said, "India never makes any trade deal on the basis of a deadline. When a good deal is made and is in the national interest, then we accept it."
Earlier, India's Foreign Minister had said, "It is expected that a trade agreement will be reached with the US before the 90-day deadline on reciprocal tariff ends on July 9."
Indian delegation conducted negotiations in Washington
A delegation from India has returned from Washington following discussions about the interim trade agreement, which is expected to be concluded before July 9. However, negotiations are ongoing as certain matters in agriculture and automotive sectors require further resolution, an official told.
The Indian delegation conducted negotiations in Washington regarding an interim trade agreement with the United States from June 26 - July 2. The delegation was headed by chief negotiator and special secretary in the commerce department, Rajesh Agrawal.
The official indicated that negotiations are in their final stages, with an announcement anticipated before July 9, coinciding with the conclusion of the 90-day suspension period of Donald Trump-era tariffs affecting various countries, including India.
The official said: "Indian team is back from Washington. Negotiations will continue. There are certain issues which need to be resolved in agriculture and auto sectors."
What India & US Want
The United States implemented an additional 26 per cent reciprocal tariff on Indian products on April 2, though it was suspended for 90 days.
The baseline 10 per cent American tariff continues to be effective. India seeks complete relief from the supplementary 26 per cent duty.
India's requests include duty concessions for its labour-intensive industries, encompassing textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oil seeds, grapes and bananas within the suggested trade agreement.
In the agricultural domain, the United States seeks reduced duties on products including dairy items, apples, tree nuts, and genetically modified crops. Given the political sensitivities surrounding agriculture, India faces significant obstacles in offering any duty reductions in this sector. The dairy sector in India remains protected, with no concessions granted to any trading partners in existing free trade agreements.
Prakash Kumar Pandey