India–US mini trade pact likely to leave tricky sectors for later: CII President

CII President Rajiv Memani

India and the US are moving closer to finalising an initial phase of the bilateral trade agreement (BTA), but sensitive sectors and issues with deeper political implications may not be part of the immediate deal, CII President Rajiv Memani said on July 3.

Memani added that both sides are aiming to secure early gains while deferring more complex matters.

The level of preparation and engagement between the government and India Inc has been extensive, he said. “Level of preparation, engagement with India Inc has been detailed. Confident that India Inc challenges will be adequately addressed. We will not have 100 percent winners, FTA will be done in phases, so tricky areas with greater political ramifications will be dealt with later. Hoping to get a satisfactory deal,” Memani said, reflecting the cautious optimism within the business community.

He was speaking ahead of the potential announcement of a mini trade pact between the two countries.

The immediate BTA is expected to address low-hanging trade barriers and pave the way for broader cooperation, while contentious areas and politically sensitive tariff lines may be taken up in subsequent phases. Terms for agriculture and dairy have been politically sensitive sectors for India during the trade talks.

According to a Moneycontrol report, the mini-deal could be announced as early as this weekend, marking a significant step in trade ties between the two nations.

This phased structure allows negotiators to deliver immediate commercial benefits while leaving room for deeper consensus-building on complex sectors. The Confederation of Indian Industry (CII) has welcomed this approach as pragmatic, given the diverse interests involved and the political sensitivities surrounding specific trade items.

While the mini-deal would ease certain tariffs and open up select market access opportunities, the real test will lie in how both sides navigate difficult sectors in future rounds.

The BTA, once finalised, is expected to provide a framework for long-term cooperation on trade facilitation, technology transfer, and standards alignment, even as negotiations on trickier subjects may continue.

India Inc remains hopeful that the emerging agreement will serve as a constructive platform for deepening India–US economic ties without compromising key national interests.