Negotiators meet in Delhi; India, US to intensify efforts for an early trade deal

The trade talks restarted on Tuesday after a hiatus of about two months as a team from USTR’s office led by chief negotiator Brendan Lynch arrived in New Delhi

India and the United States on Tuesday decided to ramp up efforts to achieve an early conclusion of “a mutually beneficial” trade agreement after negotiators restarted face-to-face bilateral meetings amid growing signs that ties frayed by US President Donald Trump’s punitive tariffs over purchases of Russian oil were on the mend.

A US embassy spokesperson said Brendan Lynch had a “positive meeting “in Delhi with his counterpart to discuss the “next steps in bilateral trade negotiations” . (X/nepalembassyusa)

The trade talks restarted on Tuesday after a hiatus of about two months as a team from the United States Trade Representative’s (USTR’s) office led by chief negotiator Brendan Lynch arrived in New Delhi late on Monday. The US officials met the Indian team led by chief negotiator and special secretary-commerce, Rajesh Agrawal, on Tuesday morning and discussed issues related to overall trade between the two countries and the India-US Bilateral Trade Agreement (BTA) till evening.

Both sides described the talks as positive in nature.

“Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal,” the commerce ministry said in a statement. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement, the statement added.

A US embassy spokesperson said Lynch had a “positive meeting “in Delhi with his counterpart to discuss the “next steps in bilateral trade negotiations” .

“While the two sides have not scheduled their next in-person meeting, they will continue trade talks through virtual mode,” one person aware of the development said, asking not to be named.

Indian and the US previously held five rounds of talks on the BTA after terms of reference for the talks were framed in March. The two sides had agreed to conclude an early first tranche of the pact by October 2025 but hurdles emerged as the US demanded unfettered market access to sectors such as dairy, agriculture and MSME, which India was unwilling to give in order to protect its farmers and small businesses.

US negotiators did not attend the sixth round of talks scheduled for August 25 in New Delhi amid trenchant criticism from Trump administration officials over India’s purchases of Russian oil. Trump cited the Russian oil buys while ordering a 25% punitive tariff on Indian exports to the US alongside a 25% levy that was imposed earlier as part of an executive order on reciprocal measures against trading partners.

A turnaround began earlier this month after Trump and Prime Minister Narendra Modi exchanged positive statements, with Trump calling Modi a “great Prime Minister” and both leaders expressing confidence in concluding trade negotiations.

The US contended that the punitive tariffs on India are necessary to put pressure on Russia to end it war on Ukraine.India has called the tariff unreasonable and unjustified.

(With inputs from Rezaul H Laskar)