India vowed on Thursday to protect its labour-intensive agriculture sector, a central sticking point in bogged-down trade talks with the U.S., as Washington threatened 25% tariffs, triggering outrage from the opposition and a slump in the rupee.

President Donald Trump threatened to impose a 25% tariff on India and an unspecified "penalty" by the end of the week.

The stakes are high, with the United States and India counting on each other as indispensable partners in their competition with China.