There will be a ‘soon’ trade deal in Indo-US, White House also spoke on Modi-Trump’s relationship

Washington: Big news has come out about the much awaited trade deal between India and America. The White House has indicated that there may be a big announcement on this deal soon. White House spokesman Keroan Lavit said that US President Donald Trump and his trade teams are finalizing the agreement. He said that Prime Minister Narendra Modi and Donald Trump have excellent relationships and they will remain. The deal will take business relations between the two countries to new heights and by 2030 a target is to reach $ 500 billion.

‘President Trump’s best relationship with PM Modi’

White House spokesperson Caroline Lavit said in a press conference, ‘President Trump said last week that a big business agreement with India is going to happen, and this is correct. I recently talked to our Commerce Secretary about this, who is working on this deal with the President in the Oval Office. Soon the President and his trade team will get an update on this agreement with India. He also added that India is an important strategic partner of America in the Hind-Pacific region, and President Trump’s best relationship with Prime Minister Narendra Modi will further strengthen the deal.

Trade deal deadline and target

Explain that this trade deal is part of an interim agreement, which is necessary to complete by 9 July 2025. This is because the new tariffs of 26% declared by the US after this date will be implemented, which can affect Indian exports. This interim deal will clear the way for a comprehensive agreement by the end of the year. The structure of this is as follows:

1. Interim Deal deadline: 9 July 2025
2. Full deal goal: December 2025
3. Business Target: Bilateral trade of $ 500 billion by 2030

Demands and challenges of both countries

In this trade deal, there are talks on many important issues, but it has been challenging to agree on some points. The demands of America and India are as follows:

America demand

1. Access to agriculture and dairy markets in India.
2. Electric vehicles and automobiles enter the market.
3. Opening markets for genetically modified (GM) crops, such as soybean and maize.
4. Cut tariffs on products such as almonds, apples, walnuts, and wine.

India’s stance

1. Security of Indian farmers and minimum support price (MSP) system.
2. Reduction in tariffs imposed by the US on steel, aluminum and auto parts.
3. Better market access to labor-dominated areas such as textile, gem-jewelery, leather, and medicines.

Main obstructions

1. India’s tough stance on GM crops and dairy products, as these areas are sensitive to Indian farmers and cultural values.
2. Differences over tariffs on auto parts and foods.

India proposal

1. Relief in tariffs on American almonds, LNG (liquefied natural gas), and auto parts.
2. 90% of tariff cuts on US products, which will be applicable in a phased manner.

Importance of Indo-US trade

Business relations between India and America are already strong. Trade between the two countries reached $ 131.84 billion in 2024-25, with America India’s largest trading partner. Through this deal, the two countries aim to take trade up to $ 500 billion by 2030. India has already reduced tariffs in some areas, such as shrimp, high-end motorcycles, and some electronics products. It is believed that this deal will not only strengthen trade relations between the two countries, but will also increase the strategic partnership between India and the US.

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