India–US bilateral trade talks are now at a crucial juncture, with New Delhi firmly rejecting U.S. demands on both agriculture and dairy—deemed “big red lines” by Finance Minister Nirmala Sitharaman . India refuses to broadly open its market to U.S. farm and dairy products, including GMOs and cattle feed, prioritizing farmer welfare and food security .

The U.S. side is pushing for access to GM crops, dairy, ethanol, alcoholic beverages, auto parts, pharmaceuticals, and medical devices, citing a sizable trade imbalance . India, however, insists that any deal must protect its small farmers, agricultural cooperatives, and vegetarian-feed standards for dairy—a culturally and politically sensitive stipulation .

Both nations are racing against the clock ahead of the July 9 deadline—the expiration of a temporary 90‑day suspension on retaliatory U.S. tariffs. If no deal is reached, the U.S. may reimpose duties of up to 26%, in addition to the baseline 10% tariff . India remains optimistic that an interim or phased agreement can be struck, with officials aiming for completion of an initial deal ahead of July 9 and possibly expanding negotiations into September–October

In short, while both sides want a deal, India’s unwavering agriculture and dairy stance is the main sticking point as negotiations enter their final stretch.

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