Tariff cuts on corn, soybean, wheat and ethanol remain off the table, with Indian officials citing risks from subsidised U.S. farm products. Domestic automakers, pharma firms and small industries have also lobbied for only a gradual opening, fearing disruption from U.S. imports.

The announcement came just two days before the August 1 deadline to impose reciprocal tariffs. However, in recent weeks, the US president has been repeating that both sides were close to striking a trade agreement.

US President Donald Trump expresses frustration with the lack of progress in trade talks with India, imposing a 25% tariff. The move comes amid concerns over trade deficits and India's reliance on Russian military equipment and energy.