A landmark trade agreement between India and the United States is reportedly in its final stages, signaling a potential breakthrough in bilateral economic relations. Sources indicate that Washington may cut tariffs on select Indian goods from 50% to 15%, paving the way for greater trade ease and cooperation. Key Sectors: Agriculture and Energy Negotiations are centered on energy and agricultural trade, with India expected to offer limited concessions in these areas. Under the proposed framework, India may import higher volumes of non-GM corn, soymeal, and ethanol from the US—moves that could support India’s growing poultry, dairy, and biofuel sectors while ensuring protection for domestic farmers. Currently, India imports around 500,000 tons of US corn annually. However, New Delhi has maintained that the 15% import duty on non-GM corn will remain unchanged despite US lobbying efforts. Market Access for Premium Cheese Under Review The US has also sought greater market access for premium cheese varieties, but India has resisted easing restrictions, citing domestic sensitivities and quality control standards. Tariff Issues and Diplomatic Tensions Negotiations have faced challenges due to the continuation of high US tariffs, with total duties on Indian exports standing at 50% half in retaliation to India’s tariffs and half as a penalty linked to Russian crude purchases. These have impacted Indian exports worth nearly ₹85,000 crore. Analysts attribute the deadlock partly to former President Trump’s hardline approach, similar to his tactics with the EU, Japan, and South Korea. Former Foreign Secretary Kanwal Sibal noted that while India values the US as a key trade ally, it will not compromise on core domestic interests. Trade Outlook: $500 Billion Target by 2030 Despite the hurdles, both nations aim to expand bilateral trade from $191 billion to $500 billion by 2030. According to the Commerce Ministry, India’s exports to the US grew 21.6% to $33.53 billion between April and July 2025, while imports rose 12.3% to $17.41 billion.