Key facts
- India-US trade deal negotiations remain stuck
- Disagreements persist over tariffs, agriculture access, and digital trade rules
- Stalemate worsens as Trump ends broader trade truce
- Indian exporters in textiles and pharma face continued tariff uncertainty
India and the United States have yet to finalise a bilateral trade agreement, and the window for a deal may be narrowing fast. Despite sustained diplomatic engagement over several months, the two sides have been unable to bridge differences on a range of contentious issues, leaving the agreement in limbo even as global trade tensions escalate.
Key sticking points include tariff reductions on Indian goods entering the US market, American demands for greater agricultural market access in India, and disagreements over digital trade and data localisation norms. India has been cautious about opening its farm sector to US imports, while American negotiators have pushed for stronger intellectual property protections — a perennial flashpoint in bilateral trade talks.
The stalemate has become significantly more consequential given the backdrop. With Trump declaring an end to the broader trade truce and Indian markets reeling, the absence of a preferential trade framework leaves Indian exporters in sectors like textiles, pharmaceuticals, gems and jewellery exposed to elevated US tariffs with no guaranteed relief in sight.
Trade analysts have warned that time is of the essence. Each passing month without a deal cedes ground to competitors such as Vietnam and Bangladesh who may secure more favourable terms. The Indian government faces the dual challenge of protecting domestic sensitivities — particularly in agriculture — while ensuring that export-oriented industries do not lose their competitive edge in one of India's most important trading partner markets.