Agriculture and dairy are understood to be the main sticking points in the proposed trade agreement between India and the US and sources said it is now up to Washington DC to take a call on the deal.
 
“India is not keen on opening up sensitive sectors of agriculture, particularly dairy and genetically modified crops,” said a person familiar with the development, noting that these are issues of national interest and the livelihood of several Indians, especially farmers, depends on this.
 
“The waiting game is now on. India is firm on protecting its interests. Sealing the deal immediately could take time but it is hoped that it will be done in the coming weeks before July 31,” the source noted.
 
Another issue that has been seen as a challenge in the talks on the bilateral trade agreement is the reduction of tariffs on automobiles by India.

According to sources, India has offered a wide range of concessions to the US in the negotiations including the purchase of crude oil and defence equipment. Further, it is also amenable to limited access in several farm products such as Washington apples, pecan nuts, almonds and walnuts from the US.
 
India has been pushing for concessions in its labour-intensive exports to the US such as textiles, leather and gems and jewellery. Concerns are also emerging over plans by the US to levy tariffs on pharmaceuticals and copper of 200% and 50%, respectively.
 
India and the US have been working on a bilateral trade deal as New Delhi hopes for a reprieve from the reciprocal tariff of 26% that is to be levied by the US from August 1 now.  US President Donald Trump has however, been positive about a trade deal with India and has indicated it may be in the offing in coming days.