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With the July 9 deadline to avert American tariffs looming, India is signaling its willingness to forge a mutually advantageous trade agreement with the United States, but not at the expense of its domestic priorities. The centre has taken a cautious yet optimistic stance as it navigates sensitive negotiations, particularly around agriculture and dairy.

Finance Minister Nirmala Sitharaman, in an interview with The Financial Express, expressed India’s openness to concluding a comprehensive trade pact with the US. “We would love to have an agreement, a big, good, beautiful one; why not?” she said, responding to former US President Donald Trump’s comment that such a deal would “open up” Indian markets to American products.

Sitharaman also underlined India’s aspirations for economic expansion and global engagement, saying, “At the junction we are in, and given our growth goals and ambition to be Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us.”

Agriculture, Dairy Non-Negotiable

Despite the willingness to strengthen ties, Sitharaman drew a firm line around sectors crucial to India’s rural economy. "Very big red lines" exist when it comes to the agricultural and dairy sectors, she said, suggesting that any trade liberalization that puts domestic farmers and livestock producers at risk is off the table.

Trump’s Economic Agenda Advances In Senate

Meanwhile, across the Atlantic, Donald Trump’s signature economic proposal, dubbed the "Big Beautiful Bill," cleared an initial procedural vote in the US Senate. The measure, which includes sweeping tax cuts, fiscal consolidation, and immigration provisions, moved forward in a 51-49 vote, with two Republicans siding with Democrats. Vice President JD Vance was ready to cast a tie-breaking vote, but ultimately it wasn’t needed.

Concerns Mount Over Deficit And Social Spending Cuts

The Bill proposes $3.8 to $4 trillion in tax reductions, including extending Trump-era tax cuts and exempting tips from taxation. However, the Congressional Budget Office has projected that the legislation could add $3.3 trillion to the federal deficit over the next decade and leave 11.8 million more Americans uninsured by 2034, according to the Associated Press.

Intra-party friction is also surfacing. Some Republicans are pushing for deeper spending cuts, particularly in healthcare, prompting a rare caution from Trump. The Bill also proposes eliminating billions in clean energy subsidies and tightening eligibility for Medicaid and food stamps, alongside allocating $350 billion for national and border security, partly financed by new immigration-related fees.