SummaryUS trade delegation in New Delhi for two-day talksNegotiators likely to finalise tariff cuts, market access issues part of interim deal, sources sayInterim deal likely to be announced by month end NEW DELHI, June 5 (Reuters) - Indian and U.S. officials are holding high-level talks this week, aiming to finalise tariff cuts in sectors such as farm and automobiles as part of an interim deal, two government sources said, with an announcement likely later this month. A U.S. delegation led by senior officials from the Office of the United States Trade Representative (USTR) began closed-door, two-day discussions in New Delhi on Thursday with Indian trade officials headed by chief negotiator Rajesh Agrawal, the sources said. Advertisement · Scroll to continue "During the current round of talks, negotiators are discussing tariff cuts on specific sectors including agriculture and autos, and proposed benefits for Indian companies," one Indian government source, said. The deal may be formally announced by month end, before the self-imposed deadline of July 9 by President Trump, but a statement is expected once meetings wrap up, possibly by Sunday, a second official said. Trade Minister Piyush Goyal, currently in Italy, may return to meet the delegation, the official added. The officials spoke on the condition of anonymity due to the sensitivity of the discussions. Advertisement · Scroll to continue Indian trade ministry didn't immediately respond to requests for comments. U.S. Commerce Secretary Howard Lutnick said in Washington on Monday that trade negotiations were progressing and a deal could be finalised soon. India and the U.S. agreed in February to work on a phased deal, aiming to lift bilateral trade to $500 billion by 2030. Officials said, India, buoyed by recent trade pact with the UK, and EU talks, is resisting U.S. demands to open its farm and dairy markets, citing potential rural backlash. "We are ready to offer a better deal than the UK pact, with average tariffs down to 10%, matching the U.S. base rate, and near-zero duties with quotas in exchange for market access and supply chain linkages," a third official said. Washington has flagged India's average farm tariff of 39%, with some duties reaching 45-50%. It is also pushing India to allow corn imports for ethanol production. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV588042 About ConnatixV588042 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Bilateral trade with the U.S., India's largest trading partner, rose to $129 billion in 2024, with India posting a $45.7 billion surplus. (This story has been refiled to add the dropped word 'officials' in paragraph 1, and to remove an extraneous word in paragraph 6) Reporting by Manoj Kumar; editing by David Evans Purchase Licensing Rights Manoj KumarThomson ReutersManoj Kumar is a Senior Economics Correspondent based in New Delhi. He covers macroeconomy with a focus on India's economic policies for manufacturing, trade and the rural economy. He has written on a broad range of topics including India's annual budgets, taxation, inflation, youth unemployment, protests and the impact of government policies on people. Previously, he worked with the PTI news agency and The Tribune newspaper covering ministries of finance, commerce & industry, and petroleum besides parliament.