*

India-U.S. trade talks extended into next week, say

sources

*

India resisting U.S. push to open farm and dairy markets

*

Negotiators aiming to thrash out differences for an

interim deal

*

Many Indian exporters delay U.S.-bound shipments over

tariffs

By Manoj Kumar

NEW DELHI, June 6 (Reuters) - 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, Indian 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 New Delhi with Indian trade officials headed by

chief negotiator Rajesh Agrawal, the sources said.

"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 Indian official said.

U.S. President Donald Trump and Indian 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.

"Many Indian exporters have held back shipments to the

U.S. in the last two weeks, fearing cargos may not reach before

the July 9 deadline," the official added.

India's exports to the U.S. jumped nearly 28% year-on-year

to $37.7 billion in the January-April period, driven by

front-loading of shipments ahead of tariff hikes in April, while

imports rose to $14.4 billion, widening the trade surplus in

India's favour, according to US government data.

India approved a licence for Elon Musk's Starlink to launch

commercial operations, ignoring his public spat with Trump,

Reuters reported on Friday.

India is opposing U.S. demands to open up its

agricultural and dairy markets, another Indian official said,

citing the impact on millions of poor farmers who cannot compete

with heavily subsidised American products.

Indian officials have also made it clear New Delhi could

pursue its complaint at the World Trade Organisation against the

U.S. tariff hikes on steel and aluminium, while aiming to work

out a bilateral agreement, the source added.