India-US trade deal to be signed in phases:CII

The proposed India-US bilateral trade agreement is expected to be signed in a phased manner, with contentious and politically sensitive issues likely to be addressed in later rounds of negotiations, Confederation of Indian Industry (CII) President Rajiv Memani said on Thursday.. “FTA will be done in phases, so tricky areas with greater political ramifications will be dealt with later,” he noted, adding that India Inc has been closely engaged with the government and expressed optimism about securing a mutually beneficial pact. “I am confident that India Inc's challenges will be adequately addressed,” he said.
Memani’s comments come at a time when negotiations between the two countries are intensifying. A high-level Indian delegation led by Rajesh Agrawal, special secretary in the Department of Commerce, is currently in Washington to resolve outstanding differences in the deal.Sources familiar with the discussions indicated that an interim trade pact could be announced before July 8, ahead of the deadline when the US is expected to impose reciprocal tariffs of up to 26% on certain Indian goods, as announced by US President Donald Trump earlier this year.
Among the biggest sticking points in the negotiations are market access and tariff reductions on dairy and agricultural products, sectors that are directly linked to the livelihoods of over 700 million Indians.The US has sought greater market access and tariff concessions in these areas, but India has remained cautious given the socio-economic sensitivities involved.Meanwhile,India may allow imports of some processed genetically modified (GM) animal-feed products from the US,according to report. This may include soybean meal and distillers dried grains with solubles (DDGS)—a by product of corn-based ethanol production—as a potential concession in the broader trade deal. These imports have been previously restricted due to India's opposition to GM crops, but the current negotiations may open a limited window.

India's Economic Outlook and Rare Earth Concerns 
Commenting on the broader economy, the CII President projected India’s GDP to grow between 6.4% and 6.7% in the current fiscal year. “At a time when global economic and political volatility is at its highest in over two decades, India stands out as a bright spot in an increasingly fractured global economy,” Memani said.
However, he raised concerns over the shortage of rare earth materials, particularly impacting India’s automotive sector. “In auto, I would say the concern is more serious than what’s come out till now. Some of the most conservative companies have begun to issue guidance on lowering production levels going forward,” he said.Rare earth elements, which are vital for sectors like automotive, defence, and renewable energy, have seen global supply disruptions due to China’s export restrictions, affecting several countries including India.Memani urged policymakers and industry stakeholders to re-evaluate supply chain dependencies. “This is a moment to re-examine all critical supply chain dependencies. We need to reduce overreliance on China for critical minerals,” he emphasized.