India holds ground as US trade deal hangs at 50 50 stage

India is not going to be pushed around to finalise a trade pact with the United States, government sources told Business Today TV, even as a July 9 deadline looms for the imposition of a 26% tariff on Indian imports.

Official sources described the ongoing talks as being at a “50-50” stage, stressing that New Delhi is not “desperate” to conclude the interim deal quickly. When asked if shifting geo-political dynamics may influence the outcome, the sources said the aim is to ensure a “win-win” outcome for both sides.

Washington is reportedly seeking expanded access across several sectors, including food and agriculture— areas India considers politically and economically sensitive. Sources noted that any concessions in this space, even in a limited capacity, would require broad domestic consultations.

In addition to agriculture, the US wants the interim deal to cover areas like government procurement, intellectual property, customs, and digital trade—including data flows.

For India, a complete rollback of the 26% reciprocal tariff remains a top priority. Although this tariff was suspended until July 9, a 10% baseline duty has already been in place since April. New Delhi is also seeking the removal of the 50% US duty on steel and aluminium imports from all countries, which has impacted Indian exporters. Further, India is pushing for a rollback of the blanket 25% tariff the US has imposed on automobiles and related parts.

Sources added that the initial agreement is expected to form the basis of a larger trade pact, with the first full tranche targeted for completion before the end of this year.

The negotiations come amid wider trade tensions sparked by former U.S. President Donald Trump’s decision in April to impose reciprocal tariffs on countries with trade surpluses against the U.S. India’s regional competitors—Vietnam, Indonesia, the Philippines, and Bangladesh—were hit with even higher tariffs and are also in talks with Washington.

Despite current challenges, the U.S. remains India’s largest export destination, underscoring the high stakes of the ongoing discussions.