US Trade Representative Jamieson Greer said “more negotiations” will be needed with India on a trade deal just days before an Aug. 1 deadline for higher tariffs.

Indian shares were muted in early trades on Tuesday, with benchmark indexes near six-week lows, as concerns over a delay in signing a trade deal with the United States and sustained foreign outflows hurt demand.

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.

The White House altered the plan at the last minute regarding India. Attempts are being made to persuade Trump to rethink his decision. However, at present, negotiators are returning to the negotiation table to resume discussions and, if necessary, completely restructure the agreement.

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.

As the window to seal a trade deal with the U.S. closes, analysts say Washington has its reasons to finalize an agreement with India sooner rather than later.

Indian Prime Minister Narendra Modi with his U.K. counterpart Keir Starmer during Modi’s two-day visit to the U.K. on July 23-24, 2025, when the two sides signed a key trade pact.

India is reducing duties for certain British agricultural products under a trade agreement, benefiting goods with negligible production in India. Sensitive items like dairy and cereals are excluded to protect local producers.

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 India-UK free trade agreement, which was signed on July 24, will lead to a loss of customs revenue for both the countries, as tariffs are reduced or eliminated on a wide range of goods, GTRI added