Talks between India and the United States on a bilateral trade pact — the first since Donald Trump imposed 50% tariffs — were described as “positive” by both governments.
“Assistant U.S. Trade Representative Brendan Lynch held a constructive meeting in New Delhi with his counterpart, Ministry of Commerce and Industry Special Secretary Rajesh Agrawal, on September 16 to discuss the way forward on bilateral trade negotiations,” a U.S. Embassy spokesperson said following Tuesday’s discussions.
India, US Pledge Progress
The Ministry of Commerce and Industry issued a similar statement, noting that both nations had resolved to intensify their work toward securing a trade deal.
“Recognising the enduring significance of U.S.-India trade ties, the dialogue was positive and forward-looking, addressing multiple aspects of the prospective deal. Both sides agreed to accelerate efforts aimed at achieving an early, mutually beneficial agreement,” the ministry said.
Lynch and his team arrived in India late Monday for the talks, which sources in the Indian government described not as the formal sixth round of trade negotiations but rather a “precursor” to them.
Relations between Washington and New Delhi had deteriorated sharply after a 25% penalty on India’s purchase of Russian oil was announced on July 30, in addition to the 25% tariffs, and implemented on August 27.
India, which has labelled the tariffs as unjustified, expressed confusion over the rationale, pointing out that China remains the largest buyer of Russian crude and the European Union continues to import the highest share of Russian LNG.
Critical remarks by U.S. President Donald Trump, who labelled India’s economy “dead,” and by advisers such as Peter Navarro, who branded New Delhi’s oil purchases from Russia as “blood money,” had further worsened tensions.
Restoring Ties
A shift in tone emerged last week when Trump publicly stated that negotiations were progressing and voiced optimism about a successful outcome.
“I am pleased to announce that the United States of America and India are continuing discussions to address trade barriers between our two nations. I look forward to speaking soon with my very good friend, Prime Minister Modi. I am confident that reaching a mutually satisfactory conclusion will be straightforward for both of our great countries!” Trump posted on Truth Social.
Indian Prime Minister Narendra Modi echoed this sentiment on X, stressing the natural partnership between the two nations.
“India and the U.S. are close friends and natural partners. I am confident our trade discussions will unlock the immense potential of the India-U.S. partnership. Our teams are working diligently to conclude these talks swiftly. I also look forward to speaking with President Trump, as together we will ensure a brighter, more prosperous future for our peoples,” Modi wrote.
Ongoing Negotiations
Negotiations launched in February had raised expectations that the initial phase of the bilateral trade agreement could be finalised by the fall of this year.
Five rounds were already completed, but the sixth — originally planned between August 25 and 29 — was postponed.
(With inputs from IBNS)
