India-US interim trade deal unlikely before August 1 deadline: Report
India’s trade team, led by chief negotiator Rajesh Agrawal, recently returned from Washington after the fifth round of discussions without any breakthrough.
Indian officials continue to remain hopeful of concluding a wider agreement by September or October, based on discussions between prime minister Narendra Modi and Trump in February. (Photo: iStock)
THE CHANCES of India and the United States reaching an interim trade agreement before the August 1 deadline have reduced, as negotiations remain stuck over tariff cuts on key agricultural and dairy products, two Indian government sources told Reuters.
US president Donald Trump had threatened a 26 per cent tariff on Indian imports in April but put it on hold to allow talks to continue. The pause ends on August 1. India, however, has not yet received a formal tariff letter, unlike more than 20 other countries.
India’s trade team, led by chief negotiator Rajesh Agrawal, recently returned from Washington after the fifth round of discussions without any breakthrough.
“An interim deal before August 1 looks difficult, though virtual discussions are ongoing,” one of the Indian government sources said. The source added that a US delegation was expected to visit New Delhi soon to carry forward the talks.
According to Reuters, the negotiations have stalled because New Delhi is unwilling to open up its agriculture and dairy sectors, while Washington has not agreed to India’s request to reduce higher tariffs on steel, aluminium and automobiles.
Officials are now considering whether some of these unresolved issues can be taken up later, after a limited agreement is signed, the second government source said.
Ajay Sahai, director general of the Federation of Indian Export Organisations, said sectors like gems and jewellery could be affected if 26 per cent tariffs are imposed. “However, this could be temporary, as both countries aim to sign the deal over time,” he said.
US treasury secretary Scott Bessent told CNBC on Monday that the Trump administration prioritised the quality of trade agreements over timelines. Asked whether the August 1 deadline could be extended for countries still in talks, he said it was for Trump to decide.
Indian officials continue to remain hopeful of concluding a wider agreement by September or October, based on discussions between prime minister Narendra Modi and Trump in February.
“Given that there have been five rounds of negotiations and another US delegation is expected, we remain optimistic about finalising a trade pact,” a third Indian government source said.
The Indian commerce ministry and the Office of the United States Trade Representative did not respond to emailed requests for comment.
JAGUAR LAND ROVER (JLR) said on Friday it is working "at pace" to resolve a cyber incident that has severely affected its retail and production activities. Factory staff have been told to stay at home until at least early next week.
The company disclosed the breach on Tuesday, the latest in a series of cyber and ransomware attacks against businesses globally. Companies such as Marks & Spencer and Co-op have also been hit by breaches in recent years.
JLR, owned by Tata Motors, said it acted immediately by shutting down its systems to limit the impact. In an emailed statement on Friday, it said there was no evidence at this stage that customer data had been taken.
"We are now working at pace to restart our global applications in a controlled manner," JLR said. "Our retail and production activities have been severely disrupted."
The company, Britain’s largest automotive employer with about 33,000 staff, said factory workers will remain at home until at least Tuesday.
Marks & Spencer, which suffered a major hack earlier this year, said the disruption over several months cost it around 300 million pounds in lost operating profit.
JLR has already faced difficulties this year. In July, it reported a near 11 per cent quarterly sales fall, partly due to a temporary halt in US shipments after the administration of Donald Trump imposed tariffs on all car imports.
Although exports to the US resumed in May, JLR cut its main profit margin target for fiscal 2026 to 5 per cent-7 per cent, down from 10 per cent, citing uncertainty over US tariff policy. The company has also been facing weaker demand in China and slower sales in Europe.
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India's finance minister Nirmala Sitharaman said the Goods and Services Tax (GST) structure would be simplified from four slabs to two, with reductions across several sectors. (Photo: Getty Images)
INDIA announced a major cut in consumption taxes on Wednesday, days after the United States imposed steep tariffs on Indian goods.
India's finance minister Nirmala Sitharaman said the Goods and Services Tax (GST) structure would be simplified from four slabs to two, with reductions across several sectors. In some cases, levies have been reduced by more than half.
The tax changes will make a range of consumer goods, including soap bars and motorbikes, cheaper. However, the move could add pressure on government finances.
The announcement comes after US president Donald Trump imposed tariffs of up to 50 per cent on imports from India, raising concerns of a slowdown.
Sitharaman said the GST cuts were not linked to the tariff issue. "These reforms have been planned for a long time," she said.
India's prime minister Narendra Modi welcomed the measures. "The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses," his office said in a social media statement.
The revised system removes tax on insurance premiums, including life and health coverage. Levies on motorbikes and small cars have been reduced from 28 per cent to 18 per cent.
A finance ministry note also said dozens of life-saving drugs will now be tax exempt.
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Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. (Photo: Reuters)
RELIANCE Industries plans to take its telecom and digital arm, Jio Platforms, public by mid-2026, chairman Mukesh Ambani said on Friday. The announcement sets a new timeline for the long-awaited IPO of a business analysts value at over $100 billion.
At its annual general meeting (AGM), Reliance also announced the launch of an artificial intelligence unit in partnership with Google and Meta.
Ambani had first indicated plans in 2019 to list Jio within five years. On Friday, he told shareholders the company is preparing to file for an IPO next year.
Reuters reported in July that Jio decided against launching an IPO in 2025. Analysts at the time valued the company at over $100 billion.
Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. Backed by investors such as Meta, Google and KKR, the business is central to Ambani’s move to diversify Reliance beyond oil and chemicals into retail, consumer and technology. AI and international expansion are now key areas of growth.
Reliance is also investing $8.8 billion in its chemicals business. It expects retail to grow sales by nearly 10 per cent a year on a like-for-like basis and plans to add 2,000–3,000 new stores annually.
“Jio is not being fully valued within Reliance's broader petrochemicals and retail portfolio, and a separate listing would help unlock higher value for the telecom and digital unit,” said Saurabh Parikh, senior analyst at ICRA Ltd.
AI Unit with Meta and Google
Reliance and Meta announced a new AI joint venture with an initial investment of around $100 million. Meta CEO Mark Zuckerberg told the AGM the venture will provide Meta’s open-source AI models to Indian businesses.
Google will partner with Reliance to deploy AI across energy, retail, telecom and financial services. It will also set up a Jamnagar Cloud region dedicated to Reliance, Google CEO Sundar Pichai said at the meeting.
The partnerships come as India-US relations face tensions following US President Donald Trump’s decision to impose 50 per cent tariffs on Indian exports in response to India’s purchase of Russian oil.
Reliance runs the world’s largest refining complex in Gujarat and is India’s biggest buyer of Russian oil.
(With inputs from agencies)
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Asda sales fell 0.2 per cent in the three months to June 30, 2025 (AFP via Getty Images)
THE chairman of Asda has admitted the supermarket chain still faces challenges after sales slipped again over the summer, but said the completion of a major IT overhaul was crucial for its recovery.
Allan Leighton told the Times that the long-delayed technology project, called Project Future, had finally been finished after years of setbacks and costs exceeding £1 billion. The work involved separating more than 2,500 systems inherited from former owner Walmart, following Asda’s 2021 takeover by TDR Capital.
Describing the programme, he said it might be “the biggest IT systems change, certainly in Europe, maybe ever”. He added: “The cost is material, but largely that is now behind us.”
The supermarket acknowledged that the switchover had caused “temporary disruption with product availability” both online and in stores, which would weigh on sales through to September.
Leighton explained: “We’ve been doing 50 stores a week, every week, for 10 weeks. The collective scale of that does cause some friction… so that’s where the impact has been.”
Leighton, who rejoined Asda last November after previously leading the business in the 1990s, has focused on price cuts and improving stock levels. He said he did not expect “any miracles” but stressed that completing the IT work and reducing distractions was “very critical” for the turnaround.
Asda has been pouring money into a Rollbackprogramme of price reductions to compete with Tesco, Sainsbury’s and the fast-growing discount chains Aldi and Lidl. The grocer said its average reduction under the scheme was about 22 per cent.
He also voiced concern about government policy, warning that chancellor Rachel Reeves’s approach could push up prices. “There’s no doubt all of this is hitting the pocket of the consumer. And when that happens, that’s not particularly good for anybody. I think there’s more gloom than we’ve seen for a long time,” he was quoted as saying. He added that Reeves risked driving up food bills by “taxing everything in some way shape or form.”
Sales at Asda fell 0.2 per cent in the three months to June 30, excluding fuel, while turnover edged down to £5.3bn. Earlier in the year, sales had fallen nearly 6 per cent.
Data from research firm Kantar showed the supermarket’s market share dropped further over the summer, with sales down 2.6 per cent. Aldi is now close to overtaking Asda as the UK’s third-largest grocer.
Leighton pointed to other parts of the business as bright spots. George, Asda’s clothing and homeware arm, posted 2.5 per cent like-for-like growth, while its convenience format Asda Express rose 8.6 per cent, outpacing the wider market. “We’re more than just a supermarket,” he said, highlighting its clothing stores, cafés and opticians.
Retail analyst Clive Black of Shore Capital said, “Asda’s Q2 performance is not yet at a stage of putting up the bunting, but we are pleased to see for all those in Leeds the signs of improvement, which we anticipate will now follow through into forthcoming quarters.”
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A logo is pictured outside a Jaguar Land Rover new car show room in Tonbridge, south east England. (Photo: Getty Images)
UK VEHICLE exports to the United States rose in July after a new trade deal between London and Washington reduced tariffs, industry data showed on Thursday.
According to the Society of Motor Manufacturers and Traders (SMMT), exports increased 6.8 per cent in July to nearly 10,000 units, following three consecutive months of decline.
The SMMT had earlier reported that exports to the US dropped 55.4 per cent in May compared with the same month last year, with smaller falls recorded in April and June.
"The US remains the largest single national market for British built cars, underscoring the importance of the UK-US trade deal, and July's performance illustrates the impact of this deal," the SMMT said.
The agreement, finalised in May and effective from June 30, cut tariffs on UK car exports to 10 per cent on up to 100,000 vehicles a year.
In April, US President Donald Trump had imposed a 27.5 per cent tariff, reducing demand and forcing manufacturers, including Jaguar Land Rover (JLR) and Aston Martin, to scale back or suspend shipments.
Almost 80 per cent of cars made in the UK last year were exported, mainly to the European Union.
The UK auto industry is largely made up of foreign-owned brands such as Japan’s Nissan and India-owned JLR.
The US is also a major market for UK-produced luxury models from Bentley and Rolls-Royce, both owned by German groups.