India-Rus Trade Deal: Big news has come about the trade agreement between India and the US. The White House has indicated that the agreement may be announced soon. White House spokesman Keroline Lavit said that US President Donald Trump and his business team are engaged in finalizing the agreement. He said that Prime Minister Narendra Modi and President Donald Trump have good relationships, and these relationships will remain strong even further. This trade agreement will take business relations between the two countries to a new height. Its goal is that by 2030, trade between India and America reach $ 500 billion.
Good relationship between Prime Minister Modi and President Trump
White House spokesperson Carroen Lavit told in a press conference that President Donald Trump recently said that a big trade agreement with India was going to happen soon, and this is absolutely correct. He told that President Trump and his team are continuously working on this deal. Lavit also said that India is an important strategic partner in the Indo-Pacific region of America, and President Trump’s strong relationship with Prime Minister Narendra Modi is helping to carry forward the deal.
Trade deal deadline and target
This trade agreement is currently being prepared as an interim deal, which is necessary to complete by 9 July 2025. After this date, the US can apply a new tariff of 26%, which can affect India’s exports. This interim deal will prepare a way to make a complete compromise by the end of the year.
Interim Deal Deadline: 9 July 2025
Target of final deal: December 2025
Trade target by 2030: $ 500 billion
Demands and challenges of India and America
There are different demands and some challenges between the two countries regarding the trade agreement between India and the US. The US wants India to open its agriculture and dairy markets for its companies. In addition, he seeks permission to trade in electric vehicles and automobile sectors in India. There is another major demand from the US that it gets approval to sell GM crops like maize and soybean in India. Also, he wants India to cut tax on American products such as almonds, apples and wines.
The main demands of India:
On the other hand, India has its own concerns and demands. India wants the safety of its farmers and minimum support price (MSP) system to be ensured. India is also demanding that the US give relief in heavy tax imposed on steel, aluminum and auto parts. In addition, India’s labor-dominated industries such as textiles, jewelery, leather and medicines get better access to the US market, so that exports of these areas can increase. It is not easy to agree between the two countries on these demands, and this is the main challenge of this agreement.
Important hurdles
Some important bottlenecks have also been revealed in the trade agreement between India and the US. India, GM (genetically modified) are taking a strict stance on crops and dairy products, as these areas are directly related to India’s agricultural system, livelihood and cultural values. In addition, there are differences between the two countries over some auto parts and food products on tax (tariffs), which are creating obstruction in finalizing the agreement.
India made some proposals
India has made some proposals to deal with these challenges. India has indicated that it is ready to give tax relief on almonds, liquefied natural gas (LNG) and some auto parts coming from the US. Along with this, India has also proposed that it will gradually deduct tax on about 90% of the US products, so that the agreement can be balanced and beneficial for both sides.
Total trade between the two countries stood at $ 131.84 billion
Trade between India and America is already strong. The total trade between the two countries was $ 131.84 billion in the year 2024-25. America remained India’s largest trading partner. India has already reduced tax on some goods, such as shrimp, expensive bikes and some electronic items. It is believed that this deal will deepen not only business, but also the strategic friendship of both countries.
