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25-06-2025
Bureau Report
NEW DELHI: Protecting India’s interest remains “supreme” in bilateral trade talks with the United States, a senior Indian trade ministry source said on Monday, as New Delhi pushes to finalize a deal before the expiry of the pause on steep reciprocal tariffs imposed by US President Donald Trump.
India is resisting US demands to open its markets for wheat, dairy and corn imports, while offering lower tariffs on high-value US products such as almonds, pistachios and walnuts.
An Indian delegation will travel to Washington soon for further negotiations, with the aim of signing an interim trade agreement that could include tariff cuts and enhanced market access for key products from both sides, another trade ministry official told reporters.
“The dates for the visit are being finalized,” the official said, adding India is keen to conclude a limited deal ahead of the July 9 deadline. However, the official also cautioned that progress hinges on the offers made by both sides.
“For us, in every trade negotiation including with the US, national interest is supreme,” the trade ministry source said.
India has asked the US to revoke its 10% base tariff and consider steel tariff cuts as part of an interim deal, while offering to address non-tariff barriers and customs rules in the first phase of a broader trade pact likely by autumn of 2025, sources said.
Trump and Indian Prime Minister Narendra Modi had agreed in February to conclude a bilateral trade agreement by autumn 2025 and to more than double bilateral trade to $500 billion by 2030.
“The outcome of talks depends on what is offered by both sides,” the Indian official said, when asked about the possibility of the deal not materializing by Trump’s July 9 deadline.
Meanwhile, India’s private sector activity accelerated sharply in June as companies ramped up production to meet surging domestic and international demand, according to a survey released on Monday that showed record export growth and robust hiring. The HSBC Flash India Composite Purchasing Managers’ Index (PMI), opens new tab, compiled by S&P Global, jumped to a 14-month high of 61.0 this month from 59.3 in May, exceeding a poll forecast for a modest lift to 59.4.
The 50-mark separates growth from contraction and the latest data showed nearly four years of sustained expansion.
Services gained momentum with the activity index rising to 60.7 from May’s 58.8, the strongest since August last year while manufacturing gained pace thanks to robust output. Its PMI climbed to 58.4 in June from 57.6.
“New export orders continued to fuel private sector business activity, especially in manufacturing,” noted Pranjul Bhandari, Chief India Economist at HSBC.
This expansion was driven by favorable demand as composite new orders grew at the fastest pace in 11 months. Goods producers experienced a more pronounced upturn than services firms.
International sales saw a remarkable rise, with overall new export business at the highest since the data started to be collected in September 2014. However, service providers recorded slower growth in export business compared to last month.
“The combination of robust global demand and rising backlogs prompted manufacturers to increase hiring,” added Bhandari.
Manufacturing employment growth reached a peak not seen since the series began over two decades ago. Service providers also continued adding jobs at a solid pace, albeit slower than in May.
