Inbizzy, New Delhi, India – As uncertainty looms over the proposed interim trade deal between India and the United States, the Indian government has taken an unconventional route, bypassing its unfinished standard operating procedure (SOP) to meet Washington’s dynamic and evolving demands. The move comes ahead of the revised deadline of August 1, 2025, set by US President Donald Trump.
The Ministry of Commerce and Industry had been drafting a 60-page SOP since May last year to bring consistency and structure to future trade negotiations. The document aimed to guide the initiation, execution, and conclusion of trade talks, including provisions for team formation and resource allocation. However, internal disagreements stalled its finalization.
“The SOP for trade negotiations, which was supposed to be finalised by the top brass of the government, could not be completed due to internal disagreements. As far as the US deal is concerned, negotiations had to be conducted outside the scope of the SOP to tackle the dynamic nature of US trade negotiations,” a senior government official told The Indian Express.
https://indianexpress.com/article/india/india-us-trade-deal-sop-in-limbo-9372010/
President Trump originally set a July 9 deadline for countries to sign trade agreements or face retaliatory tariffs. That deadline has now been extended to August 1. In the meantime, the US has imposed new tariffs on several countries, including Canada, the EU, Brazil, and ASEAN members. Despite rising tensions, Trump recently stated that a deal with India is “close.”
Farmers Raise Red Flags Over Agriculture Access
While India has held extensive consultations with key industrial sectors such as textiles and automobiles, multiple farmer unions and state governments have criticized the lack of engagement with agricultural stakeholders.
Kerala’s Agriculture Minister P Prasad issued a stark warning earlier this month, stating:
“The livelihoods of lakhs of Kerala’s rubber, coconut, dairy, and poultry farmers could be at risk if the Centre fails to protect Indian farmers’ interests in the negotiations.”
“Kerala had not been consulted on the deal,” he added, noting that “the India-ASEAN trade agreement had previously had a negative impact on the state.”
The Indian Coordination Committee of Farmers Movements (ICCFM), representing farmers from 11 Indian states, has called for agriculture to be excluded entirely from the deal. The group emphasized the threat posed by synthetic rubber imports from the US, which have already weakened natural rubber prices in India.
“The US is one of the biggest exporters of synthetic rubber. Synthetic rubber imports have seriously impacted the farm-gate price of natural rubber in India. India imported Rs 1,556.54 crore worth of synthetic rubber and related products from the US in 2017–18, and Rs 71,490.73 crore in 2018–19. If India reduces import duties on synthetic rubber from the US, it will severely affect rubber farmers,” the ICCFM said.
Farmers also fear that if a trade deal is signed, the US could import raw sugar from Brazil, refine it, and then export it to India, thereby undercutting the domestic sugar industry and pushing local producers out of the market.
Balancing Diplomacy and Domestic Pressures
India’s deviation from formal SOPs suggests an urgent need for flexibility in trade diplomacy but also reveals gaps in internal consensus on handling major economic partnerships. With only days left before the August 1 deadline, New Delhi faces a tough balancing act between securing favorable terms and protecting vulnerable domestic sectors.
The outcome of the US-India deal will likely set a precedent for how emerging economies navigate high-pressure trade talks with major global players, especially in politically sensitive sectors like agriculture.
