Exclusive: India-US limited trade deal soon, say sources

An interim trade deal between India and the US is expected to be signed in the next 2-3 days, sources told Fortune India.

As part of the negotiations, India has pressed for safeguards to labour-intensive segments of the economy, sources said.

India is unlikely to offer full market access in agriculture, dairy to US firms, they said.

This comes hours after US President Donald Trump said that the upcoming trade deal between India and the US is going to be of a “different kind” with “much less tariffs”.

"I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs," Trump said during an interaction with reporters abroad Air Force One.

Trump had earlier said that he does not intend to extend the 90-day suspension on tariffs for most countries after July 9. He said his administration will inform countries that trade penalties will be enforced if agreements with the United States are not reached.

On Friday, Trump said that a "very big deal" with India is likely to be signed soon. "Everybody wants to make a deal and be part of it. We just signed with China. We have one coming up—maybe with India. A very big one, where we are going to open up India. In the China deal, we are trying to open up China," Trump said.

On April 2, Trump introduced a wide-ranging set of tariffs under a “reciprocal tariff” framework, which included an additional 26% duty on Indian goods entering the U.S. However, a week later, on April 9, the U.S. administration granted a 90-day postponement for most of these tariffs, reverting temporarily to a flat 10% rate for nearly all impacted nations.

A successful trade deal between Washington and New Delhi could help reverse these challenges and provide a much-needed boost. The U.S. remains India’s top export market.