CNBC TV18 | 21 July 2025
India, US may hold 6th round of bilateral trade talks in August: Govt sources
By Abhimanyu Sharma
Government sources have told CNBC TV18 that the US trade delegation may visit India for the 6th round of negotiations for a Bilateral Trade Agreement (BTA) in the 2nd half of August.
Amidst the 2nd August deadline set by the US to announce further tariffs for its trading partners, government sources pointed out that negotiations will continue with the US in the meantime, with India not differentiating between an interim or the 1st phase of a bilateral trade agreement.
With issues relating to agriculture and automobiles having been discussed in the 5th round of negotiations, government sources said that India is negotiating a complete deal, but the conclusion of an interim deal with items agreed upon till now cannot be ruled out.
With both sides having discussed ways to deal with non-market economies, including China, talks were held on trade in Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET).
Stating that goods and digital services are likely to be a part of an interim trade deal with the US, government officials had pointed out that the Trump administration doesn't have the authority to bring tariffs lower than the MFN (most-favoured nation) rate, which will require approval from the US Congress.
However, the US government can remove reciprocal tariffs for several countries, including India. The US is also seeking concessions in certain industrial goods, automobiles, wines, petrochemical products, dairy, and other agricultural products.
Officials had said that India is also aiming for Minimum Import Price (MIP) or import quotas in sensitive sectors like dairy and agriculture as part of the deal, adding that India also wants 5% to 7% Basic Customs Duty (BCD) to be cut for its exports of labour-intensive products like leather.
India and the US are looking to double their bilateral trade to $500 billion by signing the 1st tranche of a mutually beneficial multi-sector bilateral trade agreement (BTA) by October 2025.
