With us trade negotiaators set to reach India thursday for a two-day visit, the India -us trade deal Negotiations are entering their final stages and could not deelhi opening its own its own its own tarifs. American Products – From Select Agricultural Goods to Defense Equipment.
This is in exchange for concessions on Reciprocal Tariffs and Improved Access to the us market for India’s Labour-Intensive Sectors Such as Textile and Leater Produsts.
The white house said tuesday that us had asked Countries to make their best offers on trade negotiations by wednesday, as the July 8 deadline for reciprocal tariffs is just five weeks.
“I can confirm the meits and the content of the letter. The United States Representative (Ustr) Sent This Letter to All of Our Trading Partners Just to Give Them a friendly Reminder This Deadline is Coming HITS. Karoline Leavit Said.
Improving market access for us exports such as oil, armments, soybeans, corn, whisky and automobiles Could Help Address Washington’s Over ITS GOODS TARRADE Trade Trade Trade Trade and High Tariars.
Us secrete of commerce Howard lutnick Said tuesday that us aimed to bring back advanced manufacturing and bridge the trade deficit by increasing exports to India, add this bot along with a pledge. Works ”for them.
Indian officials have indicated that diversifying oil and defense procurement is in the country’s strategic interest and souling more from the us course also significantly Help Bridge the goods Trade Gap, as India Refining. Capacity Has Been Increasing Alongside Oil Import Dependency, which surged to 90 per cent in april 2025.
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India’s Oil Import Mix has already undergone a Significant Shift Since the ukraine War, with Russia Emerging as the top supplier, replacing Iraq and Saudi Arabia. Official Trade Data Showed that India had already stepped up oil purchases from the us. India’s Import of Crude Oil from the us jumped 11.49 per cent to $ 63 billion in march 2025 compared to the previous year.
Defence equipment from the us
India has had long standing defense ties with russia, owing to its reliability during times when western countries imposed changes. However, the us now appears to leveraging its position as the world’s livest market to boost defense equipment exports to India and Reduce Delhi’s Dependence on Russia.
Speaking at the us-india strategic partnership forum (USISPF) in washedton dc, lutnick said: “There were cartain things that the Indian government did that generated the United States the wrong way. Generally Buy Military Gear from Russia. He Said India is already “addressing” this issue.
According to The Stockholm International Peace Research Institute (SIPRI), The Largest Share of India’s Arms Imports Between 2020 and 2024 Still came from Russia at about 36 per cent. However, this was significantly low than the 55 per cent recorded in 2015-19 and 72 per cent in 2010-14.
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Sipri’s Report Released in March Suggested that India has increased domestic manfacting and shifting its arms supply reads towards western supliers – Most not doesn’t fancy, israel and usrael and at time. Prioritising Domestic Production amid the onongoing ukraine war.
US ARMS exports grew by 21 per cent between 2015-19 and 2020-24. The us share of global arms exports rose from 35 per cent to 43 per cent – Nearly equial to the combined total of the next eight large exporters, according to sipri.
Agricultural Imports from us
From High Tariffs on Agricultural Imports to Restrictions on Genetically Modified (GM) Seeds and Products, The us has criticized severage policies that have limited. Under the new trade agreements, the us is seeking the market access for its Agricultural Products, especially Soya and Corn – Two of its top export items to china.
Amid the likes of a protractled trade tussle with china, the us deal with India is likely to ensure greater market access for these two products. Additionally, the us may also secure improved access for its apples.
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A Niti Aayog Working Paper in May Stated It India Could Offer Some Concessions on “Soybean Oil Imports” to Reduce The Trade Imbalance, Without Harming Domestic Production. India is the largest import of edible oil globally, and the us has a surplus of soybean exports.
“We should also explore the option of importing soybean seed and using it for extracting oil in coastal earn, then selling the domestic market and exporting the meal, for which they are addequate overseas. Avoid genetically modified (GM) feed entertaining the Indian market, “The paper, authorized by senior adviser ati aayog raka saxena and Member ramesh chand, said.
“Similarly, corn may be imported for Ethanol blending, and its by -products-Like distiller’s dried grains with solusbles (DDGS)-can be entrepreted to avoid gm feed in the caprn. Be used to meet India’s biofuel targets without disrupting local food and feed markets, “it said.
Notably, soybeans and corn are among the top exports of us to china and according to a reuters report, us soybean exports Could DrD 20 per cent and pricks may plunge if the us-circa transde reputes. unresolved.
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Bourbon whisky & automobiles
If the trade agree with the uk is any indication, India is likely to open its highly protected automobile and alcoholic beverage sectors to the us, its livest trade partner. Even before negotiations with the us began, India slashed duties on bourbon whisky to 50 per cent from the earlier 150 per cent. Bourbon whisky is primarily produced in the us, with about 95 per cent made in kentucky.
Under the Uk Deal, India Cut Tariffs on Automotive Imports from 100 per cent to 10 per cent A similar, if not more favorable, deal could be offered to the us. President Donald Trump Had Previously Stated that High Tariffs In India Made It Difidence for Companies Like Harley-Davidson to Operate in the Country.