India, U.S. trade talks extended as deadline looms for interim deal, sources say

India-U.S. trade talks extended into next week, focusing on tariff cuts in farming and auto sectors.

Trade talks between Indian and U.S. officials have been extended into next week as both sides seek consensus on tariff cuts in the farming and auto sectors, aiming to finalise an interim deal before a July 9 deadline, government sources said.

A U.S. delegation led by senior officials from the Office of the United States Trade Representative (USTR) held two days of discussions in the national capital with trade officials headed by chief negotiator Rajesh Agrawal, the sources said.

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"The two countries are actively engaged in focused discussions to facilitate greater market access, reduce tariff and non-tariff barriers, enhance supply chain resilience and integration," one Indian government official with direct knowledge of the talks, said.

Negotiators, who had initially aimed to wrap up talks by Friday, will now continue discussions on Monday and Tuesday to resolve outstanding differences, a second official said.

U.S. President Donald Trump and Prime Minister Narendra Modi had agreed in February to conclude a bilateral trade pact by fall 2025 and more than double trade to $500 billion by 2030.

The current talks are part of efforts to hammer out a limited trade agreement that could lead the Trump administration to revoke 26% reciprocal tariffs on Indian goods - tariffs that have been paused along with those on several other U.S. trading partners for 90 days, the second official said.