India and the United States have agreed to step up efforts for the swift finalization of a bilateral trade deal, the External Affairs Ministry confirmed on Friday. This development follows months of tension triggered by punitive tariffs imposed by former President Donald Trump and concerns over India’s purchases of Russian oil.
This week, a US delegation led by Assistant Trade Representative Brenden Lynch met with Indian negotiators in New Delhi. The discussions, described as “positive and forward-looking” by MEA spokesperson Randhir Jaiswal, marked the resumption of trade talks after nearly a two-month pause. Lynch held meetings with India’s chief negotiator Rajesh Agrawal and officials at the commerce ministry on September 16 to advance the ongoing negotiations.
The pause in negotiations had resulted from Trump’s decision to impose a 25% tariff on Indian goods linked to Russian oil imports, coupled with frequent criticisms by US officials regarding India’s ties with Russia. These actions created strains in bilateral relations not seen in the past twenty years. However, exchanges of positive messages between Trump and Prime Minister Narendra Modi this month set the stage for renewed engagement, with Trump praising Modi as a “great prime minister” and both leaders expressing confidence in concluding trade discussions.
Since March, India and the US have held five rounds of talks on the proposed trade agreement. Initial plans aimed to complete the first tranche by October, but US demands for unrestricted access to sectors like dairy, agriculture, and MSMEs clashed with India’s priorities. The Indian government emphasized that protecting farmers and small businesses would remain “red lines” throughout the negotiations.
The sixth round of talks, originally scheduled for August, had been postponed following US criticism of India’s Russian energy and defense purchases. The renewed discussions now focus on intensifying efforts for a mutually beneficial trade pact, reflecting a cooperative approach from both sides. US officials described the recent meetings as constructive, signaling optimism that an early agreement is within reach.
