India and the United States remain locked in a stalemate over key agricultural demands, with sources in the Indian government telling Business Today TV that the deadlock is “still not resolved.”
According to top officials, India has made it clear that it will not budge on dairy, a sector employing over 80 million people, many of them smallholder farmers. “There is no question of conceding on dairy. That’s a red line,” a senior government source said.
Special Secretary Rajesh Agarwal, who is leading the Indian delegation in Washington, has extended his stay by another day in an attempt to break the impasse. Talks are expected to continue through Wednesday, with Foreign Minister S. Jaishankar also scheduled to meet his U.S. counterpart, Marco Rubio, on the sidelines of a diplomatic meet.
Meanwhile, India is seeking duty concessions for a range of labour-intensive sectors, including textiles, garments, gems and jewellery, leather goods, plastics, chemicals, shrimp, oilseeds, grapes, and bananas. “These concessions do not hurt any domestic interest in the U.S. and are unlikely to face resistance,” a source said.
The interim trade agreement is being positioned as a first step toward a broader bilateral trade deal. It also aims to avert steep tariffs of up to 26% on Indian exports—a deadline that looms with urgency, as the U.S. pushes for a breakthrough before July 9.
For now, India’s position remains firm—no compromise on agriculture, especially not at the cost of its rural economy.