Why has India-U.S. trade deal been delayed? | Explained

📌 Summary:

• India and the U.S. (Feb 2025) announced intent to finalise a comprehensive Bilateral Trade Agreement (BTA) by Fall 2025 (Sept-Nov 2025); a framework for an interim deal was signed in Feb 2026 for April-May 2026 implementation — neither has come to pass
• A comprehensive deal proved elusive; negotiators shifted to targeting at least a "first tranche" rather than a single comprehensive pact
• Key friction points: U.S. pressure for tariff cuts and greater market access in agriculture and dairy, which India resists to protect its farmers and small producers
• The threat/imposition of U.S. reciprocal tariffs and disagreement over sequencing have repeatedly pushed back timelines

🎯 UPSC Relevance: GS2 (IR) / GS3 (Economy) — India-U.S. economic ties, trade negotiations, and protection of domestic agriculture amid global tariff pressures.

📝 Prelims Facts:

• BTA = Bilateral Trade Agreement; the intent was announced in February 2025, a framework signed in February 2026
• "Fall 2025" target = September-November 2025
• Agriculture and dairy market access are key Indian red lines

🔑 Key Term: Bilateral Trade Agreement (BTA) — a treaty between two countries to reduce tariffs and trade barriers and govern the terms of trade between them.