The Indian trade team will visit the United States again to further the talks on the trade deal between the two countries, says a Reuters report. The two countries have exchanged multiple delegations over the past couple of months to negotiate a trade deal. However, nothing is finalised yet.
A team of Indian delegates who were on an extended visit to the United States failed to lock a deal as the two countries remain in a deadlock on some key issues. In the meantime, the United States has extended the tariff deadline from July 9 to August 1, providing the two countries with necessary time to finalise a trade deal.
“We are engaged with the U.S. team through virtual and physical meetings,” an official said to Reuters, adding that India still aims to conclude the first tranche of the deal by fall.
What are the key hurdles?
Automobiles and auto components, steel and farm goods remain the key unresolved issues in the ongoing trade talks between India and the United States. The United States is looking for more exposure to the Indian market for its auto and farm products. However, the component remains the key priority for India and has significant bearing on Indian industry and its common people.
Last week, Indian trade and commerce minister Piyush Goyal said that the country’s interest remains paramount in the ongoing trade talks, and it will not rush into an agreement to meet the deadlines from the United States.
The Indian side is particularly cautious of farm and dairy products, as a large population of the country still sustains itself on agriculture. The opening of the import door for the United States will not have just an economic impact on the large population of farmers, but it also has political implications, as food and crop prices remain a sensitive issue in Indian politics.