India is preparing to face higher U.S. tariffs — likely between 20% and 25% — on some of its exports as a temporary measure, as it holds off on fresh trade concessions ahead of Washington's August 1 deadline,

The trade deal between India and the US remains unfinalized despite ongoing discussions. Key issues include US demands for greater access to Indian agricultural markets and tariffs on imports. Delays could negatively impact the Indian economy and stock market.

Indian negotiators aim to secure trade agreements benefiting MSMEs, similar to the India-U.K. CETA provisions, in talks with the U.S. and EU.

India is cautiously approaching trade negotiations with the US, observing complications in recent American deals with Japan, Indonesia, and Vietnam. Discrepancies exist between US and Japanese officials regarding investment profit allocation.

The prime ministers of Britain and India have sealed a major trade agreement that will reduce tariffs on products like Scotch whisky and Indian spices.

The US and the EU will have zero tariffs on aircraft and their components, some chemicals, some generic drugs, some semiconductors, some agricultural products and essential raw materials. Alcoholic beverages are not included in the agreement. The 50% tariffs on steel and aluminum remain.

India's equity benchmarks were set for a muted open on Tuesday amid caution over a delay in interim trade deal with the United States, sustained foreign outflows and weak earnings.