India is close to finalising an interim trade agreement with the U.S. that could be announced as early as this week, aiming to avoid steep tariffs threatened by President Donald Trump, the Financial Times reported on Tuesday, citing two people briefed on the talks.
The deal, which would be among the first struck with a major U.S. trading partner under Trump’s 90-day tariff pause, is seen as a stepping stone toward a broader bilateral pact, expected to be completed in phases by autumn, the FT reported.
India faces tariffs of up to 26% if no deal is reached by Trump’s July 9 deadline.
Negotiators are working to exempt politically sensitive sectors like agriculture and dairy, while India has agreed to increase imports of U.S. natural gas and some farm goods, the report said.
According to the FT report, the two sides have also agreed on tariff reductions covering thousands of products.
Talks remain sensitive, particularly over India’s protected dairy sector, which employs millions of smallholders, the report added.
India’s stock markets were largely unaffected, while the rupee’s USD/INR pair inched 0.1% lower on Tuesday.
