*

India and US aim to sign first tranche of trade pact by

fall

2025

*

India faces 26% US import tariff after 90-day pause ends

July 9

*

Both sides agree to hold more talks on bilateral pact

*

Aim to more than double bilateral trade to $500 bln by

2030

By Manoj Kumar

NEW DELHI, June 10 (Reuters) - Indian and U.S.

negotiators made progress in their latest round of talks in New

Delhi on Tuesday on a bilateral trade deal, having focused on

market access for industrial and some agricultural goods, tariff

cuts and non-tariff barriers, Indian government sources said.

"The negotiations held with the U.S. side were productive

and helped in making progress towards crafting a mutually

beneficial and balanced agreement including through achievement

of early wins," one of the sources said.

The U.S. delegation, led by senior officials from the Office

of the U.S. Trade Representative, held closed-door negotiations

with Indian trade ministry officials headed by chief negotiator

Rajesh Agrawal.

Both sides discussed increasing bilateral digital trade, by

improving customs and trade facilitation measures, the sources

said, adding that "negotiations will continue" for early

conclusion of the initial tranche of the trade pact.

U.S. President Donald Trump and Indian Prime Minister

Narendra Modi had agreed in February to conclude a bilateral

trade agreement by fall 2025 and to more than double bilateral

trade to $500 billion by 2030.

The two sides are expected to sign an interim agreement by

the end of the month, before the expiry of Trump's 90-day pause

on reciprocal tariffs on major trading partners, including a 26%

tariff on India.

Commerce Minister Piyush Goyal, currently in Switzerland for

talks with European trade partners, said India is prepared to

proceed with the deal by first addressing simpler issues.

The next phase of negotiations could tackle more complex

matters, with the goal of signing the first tranche of the

bilateral trade pact by September or October, the officials

added.

India resisted U.S. demands to open its markets to wheat,

dairy and corn imports, while offering lower tariffs on

high-value U.S. products such as almonds, pistachios and

walnuts, one of the sources said.

India also asked the U.S to revoke its 10% baseline tariff.

However, the U.S. side opposed this, noting that even Britain

was subject to this under its recent bilateral trade agreement.

Additionally, India sought an exemption for its steel

exports from a 50% tariff.

A potential 26% tariff on India would be devastating to

Indian goods - including rice, shrimp, textiles and footwear,

which together comprise nearly one-fifth of India's merchandise

exports - and could severely hit exports and dampen foreign

investment inflows.

India has pledged to increase purchases of American goods,

including energy products like liquefied natural gas, crude oil,

coal and defence equipment.

India's exports to the U.S. rose 28% to $37.7 billion in the

first four months of 2025, while imports increased to $14.4

billion, widening India's trade surplus, according to U.S.

government data.

(Additional reporting by Sarita Chaganti Singh and Khushi

Malhotra; Editing by Andrea Ricci)