July is shaping up to be a crucial month for India on the global trade front, with major Free Trade Agreements (FTAs) nearing critical stages. After years of negotiations, India is pushing to finalise interim or full-fledged trade deals with the United States, the United Kingdom, and the European Union. The country is seeking zero tariffs from the US on its exports and aiming to double bilateral trade with the UK to $120 billion by 2030.
India–US trade deal talks hit roadblock
India and the United States were earlier optimistic to finalise an interim trade deal before a 90-day tariff pause expires on July 9, 2025. However, the talks have recently hit serious roadblocks. According to a Reuters report dated June 26, both nations have been unable to reach an agreement over import duties on steel, auto parts, and agricultural products even after several rounds of talk.
Indian officials, according to Reuters, are now in no hurry to sign the deal before July 9. Still, the sources did not rule out a last-minute breakthrough if Prime Minister Modi and President Trump choose to intervene directly.
According to Reuters, an Indian delegation is scheduled to travel to Washington before July 9 for further negotiations. Earlier, on June 5, a US delegation from the Office of the Trade Representative engaged with their Indian counterparts in Delhi.
US demands wider market access for farm and auto products
The US is demanding that India commit to lowering import tariffs on farm goods such as soybeans, corn, dairy, and alcoholic beverages, as well as automobiles. It also wants India to relax certain non-tariff barriers.
However, Indian officials say these demands are proving difficult to meet without clear reciprocal commitments from the US side.
India pushes for zero tariff on steel and other key exports
India, on the other hand, has asked the US to revoke the 10 per cent base tariff and consider reducing tariffs on Indian steel and auto parts.
Earlier, former US President Donald Trump and Prime Minister Narendra Modi had agreed to more than double bilateral trade between the two countries to $500 billion by 2030.
2. India–UK FTA likely to be signed by end of July
India and the United Kingdom are close to signing a long-awaited free trade agreement (FTA) by the end of July, after over three years of on-and-off negotiations. The talks began in January 2022 and concluded on May 6, 2025.
While most of the chapters have been finalised, a few key issues—particularly related to rules of origin and auto sector concessions—are still under discussion. Once signed, the deal will need approval from the British Parliament and India’s Cabinet before it can be implemented. According to PTI, officials expect it to take about a year to enforce after signing.
The FTA will remove tariffs on several Indian exports, especially labour-intensive goods such as leather, footwear, and clothing. It will also reduce import duties on British products like whisky and cars. Both countries aim to double bilateral trade to $120 billion by 2030 through this deal.
3. Next round of India-EU FTA talks to begin in July
India and the European Union have decided to accelerate their Free Trade Agreement (FTA) negotiations, with the next round scheduled to begin on July 7 in Brussels. According to the Hindustan Times, a fourth of the total 24 chapters have been broadly agreed upon, covering key areas such as market access for goods and services, investment, rules of origin, sanitary and phytosanitary (SPS) standards, and technical barriers to trade (TBT).
According to a release by the Press Information Bureau (PIB), in May, Commerce Minister Piyush Goyal and Maroš Šefčovič, European Commissioner for Trade and Economic Security, reaffirmed their shared resolve to conclude the India-European Union Free Trade Agreement by the end of 2025.
The negotiations are prioritising the removal of tariff and non-tariff barriers across goods, services, and investments.
India and the EU resumed FTA negotiations in June 2022 after a gap of nine years. Since then, they have completed 11 rounds of talks. The EU member states include Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
EU-India bilateral ties
India and the EU share a strong bilateral trade and investment relationship. As per government data cited by the Hindustan Times, bilateral merchandise trade with the EU stood at over $135 billion — with exports to the EU at $76 billion and imports from the EU at $59 billion — making it India’s largest trading partner in goods. Bilateral trade in services in 2023 was valued at $53 billion, comprising Indian exports worth $30 billion and imports worth $23 billion. EU investments in India are valued at over $117 billion, with around 6,000 European companies operating in the country. India’s investments in the EU are estimated at around $40 billion.
In addition to the EU, India is also in talks with New Zealand, Peru, and Chile for three other FTAs, officials added.