US, India Rush to Finalize Tariff-Reducing Trade Deal as Disputes Over Dairy and Agriculture Persist
With just days left before a major tariff deadline, the United States and India are working around the clock to finalize an interim
trade deal that could lower tariffs and boost economic ties. However, talks remain stuck on sensitive issues—especially agriculture and dairy—where both sides are refusing to back down.
What’s at Stake?
The US has threatened to raise tariffs on Indian goods to 26% if a deal is not reached by July 9. Currently, a temporary 10% tariff is in place to allow time for negotiations.
Both countries want to avoid these higher tariffs, which would hurt exporters and consumers on both sides.
Key Disagreements
The US is pushing India to open its markets for American farm products, including genetically modified crops and dairy. These are politically sensitive in India, where the dairy sector supports over 80 million people, many of them small farmers.
India has firmly refused to allow more US dairy imports or genetically modified crops, citing risks to food safety and the livelihoods of rural families. “There is no question of conceding on dairy. That’s a red line,” said a senior Indian official.
India also wants the US to lower tariffs on its labor-intensive exports like garments, footwear, and leather, which are important for jobs in India.
Progress and Hopes
Despite the deadlock on agriculture, negotiators have made progress in other areas, such as reducing tariffs on walnuts, cranberries, medical devices, automobiles, and energy products from the US.
Both sides see this interim deal as a first step towards a broader agreement that could double trade to $500 billion by 2030.
Why Is This Important?
The deal is not just about economics. Both countries see it as a way to strengthen their partnership at a time of global uncertainty and competition.
US President Donald Trump has said he is optimistic about reaching a deal that will help American companies compete in India’s vast market of 1.4 billion people.
What Happens Next?
Indian negotiators have extended their stay in Washington, hoping to bridge the gap before the July 9 deadline.
If no deal is reached, tariffs will rise, making many products more expensive and possibly straining relations between the two countries.
As the clock ticks down, both Washington and New Delhi are under pressure to find common ground, without compromising on their core interests. The outcome will affect not just trade, but the broader relationship between two of the world’s largest democracies.
Maharashtra Becomes First State in India to Approve AI Policy for Agriculture
₹500 Crore Plan to Use AI, Drones & Digital Tools to Help Farmers
In a major step to modernise farming, the Maharashtra Cabinet has approved India’s first Artificial Intelligence (AI) Policy for Agriculture—called the MahaAgri-AI Policy 2025–2029. The state has set aside ₹500 crore to use AI, drones, robotics, and data tools to help solve big problems like climate change, water shortage, low productivity, and poor market access.
This new policy aims to build a tech-enabled and farmer-first agriculture system. Some of the key things included in this plan are:
Real-time help for farmers using AI: Advisory platforms will guide farmers on when to sow, irrigate, or harvest.
Precision farming tools: Using data to apply just the right amount of water, seeds, or fertilizer.
Blockchain tracking: So that fruits like grapes, bananas, and pomegranates can be traced from farms to international markets.
A special platform called VISTAAR will give advice in multiple languages using AI. It will also connect with national platforms like Agristack and Bhashini.
To make this possible, the state will create digital public infrastructure like:
ADeX (Agricultural Data Exchange) – a secure place to share farm data.
AI Sandbox – a space where startups can test new tools.
Geospatial Engine – to track crop health, waterbodies, and weather patterns.
The policy will be managed by a State-Level Steering Committee (SLSC) and a Technical Committee (SLTC). It will also set up:
An AI & Agritech Innovation Centre
Four research hubs at agriculture universities
Special focus will be on helping startups and building public-private partnerships. Innovators can get grants, run pilot projects, and access the AI sandbox to solve problems specific to each region.
A Digital Literacy Programme will train farmers and extension workers on how to use AI tools effectively through modules, fellowships, and live demos.
To attract more investment and international collaboration, Maharashtra will host an Annual Global AI in Agriculture Conference and Investor Summit.
With this move, Maharashtra has taken the lead in showing how technology and farming can go hand in hand for a better future.
Amit Shah Calls for Introspection as India’s Economy Transforms, Urges Chambers to Evolve
Introduction: While inaugurating the new headquarters of MACCIA in Mumbai, Union Home and Cooperation Minister Amit Shah said India is witnessing transformative changes in industry, commerce, and agriculture, and urged trade chambers to modernise and align with the nation’s evolving economic landscape.
Details: In a powerful address at the inauguration of the new headquarters of the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) in Mumbai, Union Home Minister and Minister of Cooperation Amit Shah reflected on the sweeping changes India has undergone across key sectors—industry, commerce, and agriculture.
Speaking at a state-level cooperative industrial conference, Shah was joined by Maharashtra Chief Minister Devendra Fadnavis, Union Minister of State for Cooperation Murlidhar Mohol, and other senior dignitaries.
Shah highlighted that MACCIA’s centenary year is not just a milestone but an opportunity for reflection and reinvention. “When an institution completes 100 years, its rules and traditions often become outdated. This is a time for introspection,” he stated, urging India’s Chambers of Commerce and Agriculture to revisit their working models to better match today’s dynamic economy.
He emphasised that the globalisation of India’s economy, new policy-making frameworks, and stronger execution have significantly raised the country’s global standing—including the value of the Indian passport. “Today, we are the fourth-largest economy in the world, having surpassed those who once ruled us,” he noted with pride.
Shah called on all chambers across the country to engage professional institutions to audit and upgrade their operations to align with modern-day challenges and global economic standards. He pointed out that India’s economic journey—from dependency on colonial laws to becoming a global economic powerhouse—shows what determination, reform, and vision can achieve.
As MACCIA embarks on its next century, the Union Minister’s message was clear: the time for transformation is now. Institutions must adapt not only to support business but to lead innovation in India’s rapidly evolving agriculture, trade, and industrial ecosystem.
