US-India trade talks: India digs in heels against cheaper US farm imports, say sources

Officials are likely to brief the Union Cabinet on the current status of trade negotiations with the United States during today's meeting scheduled for 1 pm.

Central to these discussions is the ongoing dispute over agricultural tariffs, with both nations standing firm on their demands, official sources told Business Today.

The sources said that India remains resistant to the US proposal that seeks the opening up of its agriculture and dairy sectors to cheaper imports.

Washington has repeatedly highlighted India's relatively high agricultural tariffs as a significant hurdle in bilateral trade, noting that India's simple average tariff currently stands at 39 percent, significantly higher compared to the US's average of just 5 percent.

Previously, India's trade-weighted average tariff had been as high as 65 percent, compared to the US's 4 percent, intensifying US demands for tariff reductions. On the other side, India is seeking concessions from the US, specifically demanding reduced duties on food items, butter, and bovine meat to achieve a more balanced trade relationship.

With both nations steadfast in their positions, today's Cabinet briefing will be crucial in determining India's next steps in these high-stakes trade negotiations.

Meanwhile, official sources said that trade discussions between the United States and India are progressing smoothly, with no indication of a deadlock. The ongoing negotiations are focused on developing a tailored, sector-wise tariff approach that may be implemented in phases. Officials are exploring the possibility of tariff moderation for high-demand goods with substantial trade volumes, ensuring mutual economic benefits