New Delhi/Washington, July 1, 2025 — The much-hyped India–U.S. trade agreement, once described by leaders as “big and beautiful,” is now struggling to find traction. Despite repeated assurances from both sides, months of negotiation have yielded little movement on the key elements of the deal. Critics now question whether political fanfare has outpaced economic substance.

At the heart of the stalemate is a growing gap between ambition and execution. The agreement, which was supposed to provide a framework for deeper commercial ties, is stuck on contentious issues such as agricultural access, intellectual property rights, e-commerce regulation, and tariffs on industrial goods.

“The political optics have been impressive,” said a former Indian ambassador to the U.S., “but behind closed doors, negotiators are finding it difficult to make real concessions.”

India Holds the Line on Key Issues

India’s position remains firm on its right to protect vulnerable domestic sectors, particularly agriculture and public health. New Delhi has refused U.S. demands for greater access to its dairy and poultry markets, fearing the impact on millions of small farmers. India also continues to resist U.S. pressure on pharmaceutical pricing and patent extensions.

In the digital space, India insists on its right to impose data localization rules to safeguard consumer privacy and ensure regulatory oversight. Washington views these policies as trade barriers that disadvantage American tech companies.

“There’s a genuine clash of values,” said a Delhi-based trade analyst. “India prioritizes equity and sovereignty; the U.S. pushes for market liberalization.”

U.S. Stakeholders Demand More

On the American side, there is growing impatience among lawmakers and industry stakeholders who see India as a critical partner but accuse it of dragging its feet on reform. Several U.S. agricultural and tech lobbies are pressing the Biden administration to secure meaningful market openings before signing any deal.

“What’s on the table now doesn’t justify the fanfare,” said a policy advisor to a U.S. Senator from Iowa. “We need enforceable commitments—not just statements of intent.”

Numbers Tell a Story

While India–U.S. bilateral trade reached a record $192 billion in 2024, trade imbalances remain a concern. U.S. goods exports to India still face significant tariff and non-tariff barriers, while Indian service providers continue to struggle with H-1B visa uncertainty and tightening immigration rules in the U.S.

The original goal of the deal was to simplify trade norms, reduce tariffs, and establish rules for digital and green economies. But instead, the two sides have become mired in old disputes.

Strategic Relations Unaffected—for Now

Despite the deadlock, both governments remain publicly committed to the broader strategic partnership. Defense and technology cooperation continues to grow, with recent agreements signed in quantum computing, AI, and fighter jet co-production.

However, analysts warn that repeated failures on trade could undermine the credibility of the partnership. “You can’t build a 21st-century alliance without a 21st-century economic framework,” said a senior fellow at a Washington think tank.

What’s Next?

With upcoming policy review meetings in late July and a potential visit by India’s commerce minister to Washington in August, there is still hope that a scaled-down deal can be salvaged. But both sides will have to manage domestic expectations and accept that a perfect deal may be impossible.

“The goal now should be a pragmatic reset,” said a former trade negotiator. “Start small, build trust, and then expand.”