India Links U.S. Agricultural Access to Reciprocity on Indian Manufactured Goods
Trade talks between the U.S. and India are stalled despite President Trump’s optimism about a deal. The U.S. demands greater access to India’s agricultural market, but refuses to grant India the same access for its manufactured goods that China enjoys.
Complicating matters further is Trump’s pro-Pakistan tilt, which has cast a shadow over the talks.
India is focused on protecting critical sectors—agriculture, digital infrastructure, and regulatory autonomy. With 60% of its population tied to agriculture, any concessions could endanger millions of livelihoods.
Meanwhile, the U.S. resists opening its market to India’s labor-intensive exports like textiles, steel, leather, and emerging sectors such as electronics, auto parts, and engineering goods.
These sticking points have frozen progress on broader strategic and commercial cooperation. Without a deal by July 9, incoming 26% tariffs could significantly shrink India’s $41 billion trade surplus with the U.S.—though this is minor for America’s $25 trillion economy. Trump has far larger trade imbalances to address with China, Europe, Canada, and Mexico.
India’s goal of reaching $500 billion in two-way trade with the U.S. by 2030 could remain a dream unless both sides compromise. A limited deal—similar to the U.S.-UK mini trade pact—may be the only realistic path to avoid tariffs.
Let’s hope reason prevails. ………Cheers.
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