NEW DELHI – Trade discussions between Indian and US officials on September 16 were described as “positive” and “forward-looking” by New Delhi, signaling renewed momentum towards a bilateral trade agreement despite recent tensions over punitive tariffs imposed by the US.
The talks were led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, and India’s chief negotiator Rajesh Agrawal. Following a day-long meeting in New Delhi, India’s commerce ministry stated that both sides decided to intensify efforts to conclude a mutually beneficial trade deal soon.
However, key issues remain unresolved, including US demands for India to reduce its Russian oil imports and open its agriculture and dairy sectors, demands India has been reluctant to meet due to domestic priorities. In August, President Donald Trump had imposed an additional 25 percent tariff on Indian goods linked to its Russian oil purchases, doubling overall tariffs to 50 percent and leading to a temporary halt in talks.
India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July, reflecting early impacts of the tariffs, though exporters hope a final trade agreement will restore momentum. Both sides are expected to hold a formal sixth round of negotiations in the near future to address outstanding issues amid efforts to rebuild cooperation.
This development marks the first face-to-face trade engagement since the tariff impositions, showing cautious optimism on both sides despite ongoing challenges in the negotiations.