The long-awaited India-US trade deal has stalled, with negotiations hitting a wall over tariffs, market access and agricultural imports. Here is what happened and what comes next.

The two countries have been negotiating for years, aiming to double bilateral trade. But talks have repeatedly snagged on the same issues: Washington wants lower Indian tariffs on farm goods, dairy and medical devices, while New Delhi wants relief from US tariffs on steel, aluminium and other exports.

The latest round broke down after the US imposed fresh tariff measures, prompting India to respond with its own duties. Business groups on both sides, which once cheered the prospect of a deal, now warn that uncertainty is hurting investment plans.

For India, the stakes are high. The US is its largest export market, and sectors from textiles to IT services depend on smooth access. For Washington, India is a key partner in its Indo-Pacific strategy, making a trade rupture politically awkward.

Diplomats say neither side wants a full breakdown, and back-channel talks continue. But with elections and domestic politics in play, a breakthrough looks unlikely in the near term. Exporters on both sides are advised to plan for prolonged uncertainty.