The United States has been exerting consistent pressure on India to liberalize its agriculture and dairy sectors, but the Indian government has firmly declined, stressing that any such concession would severely impact the livelihoods of small farmers and cattle rearers who depend on these sectors for survival. Due to this ongoing impasse, the upcoming round of negotiations for the proposed India-US bilateral trade agreement (BTA) appears to be delayed, as a visiting American delegation that was expected in New Delhi later this month is now likely to defer its scheduled trip. According to an official source, the sixth round of negotiations, which was originally planned for August 25 to 29, is likely to be rescheduled, thereby slowing down the overall pace of discussions after five rounds of talks have already been completed.
This postponement is occurring at a time of growing friction between Washington and New Delhi, especially since the United States has recently imposed new trade penalties on India. A 25 per cent duty on Indian goods has been effective since August 7, and another 25 per cent levy is scheduled to take effect from August 27 as a punitive measure against India’s crude oil and military equipment purchases from Russia. Together, these combined tariffs will raise the overall duty on Indian exports to America to a substantial 50 per cent, creating additional hurdles for Indian exporters. At the same time, Washington has kept up its demand for India to provide greater access to politically sensitive areas like agriculture and dairy, but India has once again reiterated its categorical refusal, maintaining that any such steps would jeopardize vulnerable groups such as farmers and cattle rearers.
Yet, despite these trade tensions and tariff disputes, bilateral commerce between India and the United States has continued to grow steadily. Commerce ministry data reveals that India’s exports to the United States surged by 21.64 per cent to USD 33.53 billion, while imports from America rose by 12.33 per cent to USD 17.41 billion in the April-July 2025 period. This strong momentum ensured that the United States remained India’s largest trading partner, with overall bilateral trade during the same period reaching USD 12.56 billion. Both countries have already committed themselves to concluding the first phase of the BTA by the fall of 2025, with an ambitious shared objective of more than doubling bilateral trade from the current level of USD 191 billion to USD 500 billion by the year 2030.
Amid these developments, US President Donald Trump’s announcement of an extra 25 percent tariff on Indian exports has provoked strong responses from New Delhi. Prime Minister Narendra Modi, in his Independence Day address, emphasized the importance of turning towards swadeshi or Made in India products, while also extending unwavering solidarity with farmers, fishermen, and livestock rearers. Modi declared that he would never allow any policy to undermine the rights and welfare of these communities, firmly stating that his government stood like a wall in defense of their interests and would never compromise on their livelihoods.
Meanwhile, attention has also shifted to the geopolitical dimension, with a key discussion on the Ukraine conflict taking place in Alaska between President Trump and Russian President Vladimir Putin. This meeting has raised hopes that a possible improvement in Washington-Moscow relations could eventually ease the additional 25 per cent tariff burden on India. Interestingly, Trump, who had only days earlier taken a stern stance against Russia, adopted a softer tone during the Alaska meeting, remarking that while secondary sanctions might be considered in the future, there was no immediate need to impose them, as doing so right away would be devastating for Russia. This subtle shift in tone has added a layer of cautious optimism that the ongoing tensions could eventually see some relief, benefiting India’s trade situation indirectly.
