India's trade team has extended its stay in Washington to iron out differences as the two sides seek to reach an agreement before July 9 deadline when higher US tariffs will take effect, according to reports.

The in-person negotiations were supposed to conclude on June 27 but were postponed by one day, increasing the likelihood of an interim trade agreement.

Key Highlights

India–US aim to announce interim trade deal before July 9, avoiding reciprocal tariffs.
Negotiations face hurdles on farm, auto, steel tariffs; agriculture remains non‑negotiable for India.

Both sides have dug in their heels on a few key issues, including Washington's demand that India open its market to genetically modified crops, which New Delhi has rejected, citing risks to farmers.

Also Read: Govt Holds Extensive FTA Talks to Protect Domestic Industry: Piyush Goyal

Meanwhile, India is unwilling to sign a deal that does not address both sectoral access and reciprocal tariffs on its exports, Bloomberg previously reported.

Recently, Trump has hinted at a major trade deal with India. Last week, US President Donald Trump stated that "a very big" deal with India was likely to be reached soon, citing both countries' hardening positions. He stated that his administration intended to remove all trade barriers, which he described as "unthinkable".