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US pressing India to open key sectors with ‘take-it-or-leave-it’ approach: Report

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3 min read | Updated on June 11, 2025, 12:00 IST

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SUMMARY

The United States is adopting a firm "take-it-or-leave-it" stance in ongoing trade negotiations with India, pressing for market access in sensitive sectors like dairy, agriculture, digital, and medical services.

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Prime Minister Narendra Modi and US President Donald Trump has set a goal to double bilateral trade to $500 billion by 2030, with an interim trade agreement targeted for completion by fall 2025.

The United States is pushing India to open sensitive sectors in ongoing trade talks, adopting a firm stance that Indian officials describe as a "take-it-or-leave-it" approach, according to a report by Mint.

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A US delegation, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, held face-to-face talks in New Delhi from June 4 to June 10.

The US side has sought definitive commitments on market access in sensitive areas such as dairy, agriculture, digital, and medical services, reported Mint, citing people familiar with the development.

“The negotiations are not progressing as expected. The talks were meant to be two-way. However, the US team’s insistence on opening certain critical sectors comes across as a take-it-or-leave-it offer,” Mint quoted one of the sources as saying.

The negotiations, led on the Indian side by chief negotiator Rajesh Agrawal, will continue virtually.

The US is pressing India to reduce duties on agricultural goods, dairy, and shrimp, and remove non-tariff barriers restricting US dairy exports, without offering significant market access for Indian goods in return, according to the report.

India has consistently opposed opening its dairy market to US products over concerns tied to animal feeding practices. According to an earlier Mint report, India has demanded that US dairy exporters adhere to its vegetarian certification standards before allowing products such as cheese and butter into the country.

New Delhi views the current US stance as at odds with a February 13 joint statement issued by President Donald Trump and Prime Minister Narendra Modi, in which both sides pledged to work toward a mutually beneficial trade agreement by fall 2025.

India is looking to finalise an interim Bilateral Trade Agreement (BTA) by July 9 to avoid a 10% universal US tariff and an additional 16% country-specific tariff on Indian exports, which could severely impact goods like rice, shrimp, textiles, and footwear.

"It’s not that it can’t be done—it’s possible, as both countries are in favour of it. India was the first country to be offered a trade agreement. We are trying our best to make it happen," Mint quoted another source as saying.

Commerce Minister Piyush Goyal, currently in Switzerland for talks with European counterparts, said India is prepared to move forward by first resolving less contentious issues. The next phase of talks would address more complex trade barriers, officials said.

India has offered to lower tariffs on high-value US products like almonds, pistachios, and walnuts, and increase purchases of American energy products and defence equipment, while resisting US demands for wheat, dairy, and corn imports.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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