The ministry of external affairs said on Friday that India and the US have agreed to increase efforts to complete a mutually advantageous trade agreement at the earliest.
The two sides agreed to do this during a meeting between top officials from the two countries against the backdrop of sustained efforts to repair bilateral ties frayed by US President Donald Trump's imposition of protective tariffs.
Top officials of the two countries had a meeting in New Delhi this week, with the US delegation headed by assistant US trade representative Brenden Lynch. Terming the talks as "positive and forward-looking," ministry spokesperson Randhir Jaiswal said the talks represented new momentum in the negotiations after a virtual freeze for almost two months.
The meeting between Lynch and India’s chief negotiator Rajesh Agrawal signalled the resumption of talks on a bilateral trade agreement, which had stalled amid growing friction. Trump’s move to impose a 25% punitive tariff on Indian goods—citing New Delhi’s Russian oil imports—combined with repeated US criticism of India’s engagement with Moscow, had pushed relations to their lowest point in two decades.
Jaiswal said that the American team had discussions at the ministry of commerce on September 16 to "take forward the ongoing negotiations for a trade deal." He further said: "The discussions were positive and forward-looking, covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement."
The US embassy concurred, stating Lynch had a "positive meeting" with his Indian counterpart to discuss "next steps in bilateral trade negotiations." The commerce ministry also highlighted the constructive tone of the talks.
India and the US have conducted five rounds of talks since March on agreed terms of reference. Both parties had originally wanted to conclude the first phase of the deal by October. Washington slowed the talks, however, by insisting on tariff-free market entry in sensitive sectors like dairy, agriculture, and Micro, Small and Medium Enterprises (MSMEs). India pushed back against these requests, indicating that protecting farmers and small companies were its "red lines."
Tensions were further inflamed by US negotiators pulling out of the sixth round in August, amidst scathing criticism by Washington of India's continued energy and defence tie-ups with Russia. The breakthrough was earlier this month after a series of conciliatory messages were exchanged between Trump and Prime Minister Narendra Modi. Trump referred to Modi as a "great prime minister," and both leaders expressed hope about wrapping up the negotiations soon.
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