US calls India’s latest trade proposal its “best ever” as high-stakes negotiations begin in New Delhi

US–India trade tensions resurfaced this week as negotiators gathered in New Delhi for a fresh round of talks, even as senior US trade official Jamieson Greer described India’s latest offer as the “best ever” made to Washington. Speaking before the US Senate Appropriations Committee in Washington DC, Greer acknowledged India’s longstanding resistance to opening its agricultural markets but said recent proposals showed unusual flexibility.

Greer noted that India remains “a difficult nut to crack,” particularly on American row crops such as corn and soybeans, and on imported meats. “The type of offers they’ve been talking to us about have been the best we’ve ever received,” he said, adding that India could become a “viable alternative market” at a time when the US is trying to diversify exports away from China.

Agriculture remains the biggest roadblock

Agricultural access has repeatedly derailed US–India trade talks, including a breakdown in negotiations in August after India refused to lower barriers seen as essential protections for its small farmers. While the US is seeking expanded markets for its $30-billion soybean industry and other row crops, India has remained insistent on shielding its fragmented agricultural sector, where most producers are small-scale and vulnerable to global competition.

The divergence deepened this week after US President Donald Trump threatened fresh tariffs on Indian rice, citing concerns over “dumping” in the US market. Washington already imposes 50% tariffs on Indian rice — the highest level applied to any country.

Trump’s comments followed complaints from a Louisiana farmer at a White House roundtable, who said US growers were struggling due to rice imports from India, China, and Thailand. Turning to US Treasury Secretary Scott Bessent, Trump questioned why India was “allowed to do that,” insisting tariffs would “solve the problem in two minutes.”

India stands firm on farmers’ interests

Prime Minister Narendra Modi has repeatedly signalled that farm-sector protections are non-negotiable. In his Independence Day address, he stressed that India “will not compromise” on the livelihoods of farmers, fisherfolk, or cattle keepers — a message widely interpreted as a response to Washington’s renewed pressure on dairy and agricultural access.

India’s reluctance to accept genetically modified (GM) imports has been another sticking point. While the US argues that its GM soybeans could be used for India’s expanding biofuel sector, New Delhi has been cautious. Trade experts say that if India permits soybean imports strictly for biofuel processing, it could create a narrow but meaningful breakthrough.

Tariffs, safety standards, and cultural norms complicate negotiations

The US has repeatedly raised concerns about India’s agricultural support schemes, its certification rules for GM products, and its strict dairy-import requirements. US dairy exporters argue that India’s insistence on certifying that animals were not fed blood meal, internal organs, or porcine by-products lacks scientific justification. India maintains that these standards align with domestic food safety norms and cultural sensitivities.

A recent report by the Indian Council for Research on International Economic Relations (ICRIER) noted that India — the world’s largest dairy producer — has a market dominated by cooperatives and domestic private players, leaving little room for foreign companies. The think tank acknowledged that competition could improve product variety and quality in India but emphasised that policymakers remain focused on protecting millions of small dairy farmers.

Broader geopolitical context

The current talks also come amid a global shift in agricultural trade dynamics. As the US seeks to reduce dependence on China, markets like India are gaining strategic importance. In November, Washington removed retaliatory tariffs on several Indian agricultural goods — from spices and tropical fruits to beef and fertilisers — to ease inflationary pressures at home and create momentum for negotiations.

Whether this week’s talks will yield a breakthrough remains uncertain, but Greer’s unusually upbeat assessment suggests both sides may be inching closer to a compromise after years of stalled discussions.