India and the United States are finalizing a trade agreement that includes limited concessions on genetically modified crop imports while protecting sensitive sectors like dairy and agriculture. The deal is expected to be announced before July 9, 2025.
India and the United States are approaching the final stages of a bilateral trade agreement, potentially set for announcement before July 9. The deal represents a significant shift in India’s trade policy by allowing limited imports of genetically modified (GM) crops for animal feed. However, the Indian government has made it clear that concessions in the dairy sector and other sensitive agricultural areas will not be part of the deal.
The Ministry of Commerce and Industry, India is leading the negotiations, ensuring that domestic agricultural interests are safeguarded while exploring trade flexibility in less-sensitive sectors. The trade deal is expected to be phased, enabling gradual alignment on technical standards and regulatory procedures.
Among the possible early-phase inclusions are duty reductions on select GM crops like soybeans and corn, imported primarily for livestock feed. The Office of the United States Trade Representative (USTR), however, continues to push for broader access in industrial goods, electric vehicles, and food categories like apples.
India has refused to budge on dairy products, citing safety, consumer preference, and local livelihood concerns. Meanwhile, the country seeks greater market access in the US for textiles, electronics, and generic pharmaceutical exports.
The two sides are also addressing certification issues related to GM and non-GM crop differentiation, which pose a technical challenge to enforcement. Despite these hurdles, both countries are optimistic about concluding the deal, viewing it as a critical step to deepening strategic and economic ties.
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