India pushes for duty cuts for labour-intensive sectors

Hectic negotiations between India and the US enter the sixth day on Tuesday in Washington, with the talks reaching a crucial stage and New Delhi demanding greater market access for its labour-intensive goods, an official said.

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The Indian team, headed by special secretary in the Department of Commerce Rajesh Agrawal, is in Washington for negotiations on an interim trade agreement with the US.

The stay of the Indian officials has been extended. Initially, the delegation was scheduled to stay for two days, with the talks having commenced on June 26.

These talks are also important as the suspension date of Trump's reciprocal tariffs is approaching. It will end on July 9. The two sides are looking at finalising the talks before that, the official said.

India has hardened its position on giving duty concessions to American farm products. It is seeking duty concessions for its labour-intensive goods such as textiles, engineering, leather, gems and jewellery.

"If the proposed trade talks fail, the 26 per cent tariffs will come into force again," the official added.

On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent tariff.

The US is demanding duty concessions in both the agriculture and dairy sectors. But these segments are difficult and challenging areas for India to give duty concessions to the US as Indian farmers are into sustenance farming and have small land holdings.

Therefore, these sectors are politically very sensitive.