India's Stance on US Trade Deal

The Indian government is holding firm on its position with the United States, emphasizing red lines in sensitive sectors such as dairy and agricultural products, including genetically modified foods. This stance prioritizes the interests of Indian consumers, especially concerning oil purchases.

Challenges in Negotiations

With both sides entrenched in their positions, reaching a breakthrough in talks appears challenging. A team of American trade negotiators is expected in New Delhi later this month for the sixth round of bilateral trade discussions.

Political Sensitivities and Subsidies

Lowering tariffs on farm products like corn and soybean is politically sensitive, as it would expose small Indian farmers to competition from large, subsidized US growers. Similar concerns apply to the dairy sector, which Indian negotiators have consistently highlighted.

GM Foods and Ethanol Exports

Genetically modified foods remain a contentious issue, with discussions previously focusing on certification and the export of processed maize as ethanol and soya oil. However, the Trump administration insists on broader market access.

Trade Surplus and Market Access

While the US demands zero-duty access for all its products into India, it offers no reciprocity, maintaining additional tariffs on other countries. India has proposed duty cuts to facilitate American product access to its rapidly growing market, but these efforts have been deemed insufficient by the US.