India, US Talks Renew Hopes of Trade Pact

New Delhi: Inching closer to a breakthrough on the India-US trade deal, India on Tuesday said that the discussions with Assistant US trade representative Brendan Lynch were “positive and forward-looking,” which are expected to pave the way for the sixth round of talks in Washington. Talks on a bilateral trade agreement — the first since 50 per cent tariffs were imposed by Donald Trump — have also been described by the American side as “positive.”

Acknowledging the importance of the BTA between India and the US, the Union Commerce Ministry said that the discussions were positive and forward-looking, covering various aspects of the proposed deal. “It was decided to intensify efforts to achieve the early conclusion of a mutually beneficial trade agreement,” the ministry said in a statement.

“Assistant US trade representative Brendan Lynch had a positive meeting in Delhi with his counterpart, Ministry of Commerce and Industry special secretary Rajesh Agrawal, on September 16 to discuss next steps in bilateral trade negotiations,” a US Embassy spokesperson said after the meeting.

Lynch, who arrived in India on Monday night, also categorised the discussion as “positive.”

The talks were originally scheduled to take place between August 25 and 29, but were postponed after US President Donald Trump imposed 50 per cent tariffs on Indian goods following five earlier rounds of negotiations.

A team led by Lynch met senior officials from the commerce ministry, headed by Special Secretary Rajesh Agrawal, in Delhi, and the meeting lasted more than seven hours. The aim was to ensure that stalled negotiations on the bilateral agreement would soon resume. “The meeting does not mark the start of the next round of negotiations; it was more of a discussion to ‘see how’ an agreement could be reached positively on the tariff issue,” a source said.

Negotiations on the trade deal had stalled after Trump imposed hefty 50 per cent tariffs on Indian goods, partly as a penalty for Delhi’s purchase of Russian oil and weapons. India has defended its decision, citing domestic energy needs, and called the tariffs “unfair.”

However, senior officials also said that India and the US have continued discussions virtually every week. The high-stakes meeting between the two negotiators took place within days of Prime Minister Narendra Modi’s warm response to President Trump’s positive assessment of trade ties between the two countries.

OPTIONAL

Reacting to the development, Ajay Sahai, CEO of the Federation of Indian Export Organisations (FIEO), said that the visit of the US delegation marked a precursor to the sixth round of talks, as both sides aim to move closer to an agreement ahead of the autumn 2025 deadline.

“Exporters are hopeful that a bilateral trade deal will ease the burden of high tariffs, particularly the 25 per cent secondary tariff, which has posed significant challenges for the Indian industry. With a duty differential of 30-35 per cent against competitors, the pressure on exporters is immense. A successful agreement could create a more conducive trade environment, offering much-needed relief to Indian exporters and strengthening bilateral economic ties,” Sahai said.