New Delhi, June 26 -- As the July 9 deadline for the reimposition of the U.S.' reciprocal tariffs approaches, a potential trade deal still remains challenging as an agreement between India and the U.S. on agriculture and dairy remains elusive, according to sources.

"We want to do a deal before July 9, but agriculture and dairy are emerging as challenges," a source which is aware of the developments said.

"These are sensitive sectors, especially dairy, so we want to be very careful."

However, despite the government's keenness to conclude a deal with the U.S. before July 9, it is not "desperate" to do so, they said. "Even if we miss the deadline of July 9, what will happen, tariffs will go back to April 2 levels," the source said.

"So, ...