New Delhi: India and the United States resumed bilateral trade talks on Tuesday, marking the first in-person engagement since punitive tariffs were imposed by the Trump administration late last month. The discussions, led by Brendan Lynch, the assistant US Trade Representative for South and Central Asia, and India’s special secretary in the Department of Commerce, Rajesh Agrawal, aim to resolve disputes that have created uncertainty for exporters.
First face-to-face dialogue after tariffs
The talks follow Washington’s decision to impose hefty 50 per cent tariffs on Indian goods, including a 25 per cent punitive charge linked to New Delhi’s purchase of Russian oil. The move had delayed the sixth round of bilateral trade agreement (BTA) discussions, which were originally scheduled for August 25–29.
“This is not an official round of negotiations but an exploratory discussion to set the stage for future talks,” Agrawal told reporters, adding that the single-day meeting is focused on building a roadmap to address existing trade hurdles.
Weekly virtual engagement continued
Since the August setback, both sides have maintained weekly virtual consultations, though officials admit progress has been slow due to what they describe as an “unfavourable environment.” A senior government representative noted that trade relations have been further strained by US pressure on India to scale down its Russian oil imports, which Washington argues indirectly supports Moscow’s war efforts in Ukraine.
Despite these challenges, the Trump administration has recently struck a softer tone. US President Donald Trump has described Prime Minister Narendra Modi as a “good friend” in social media posts, while Modi’s responses have stayed firmly focused on formal bilateral relations.
India’s firm stance on red lines
Sources within the Ministry of Commerce indicated that while India is open to constructive dialogue, it remains firm on protecting domestic interests. Sensitive sectors such as agriculture, dairy, and small-scale farming are unlikely to see concessions.
Key non-negotiables include import duties on farm products, restrictions on genetically modified food, and cultural sensitivities related to animal-based cattle feed. Additionally, India continues to assert autonomy over crude oil procurement, maintaining that energy security cannot be compromised.
“Trade agreements must be mutually beneficial,” a senior official said, emphasising that India will not accept measures that disproportionately affect vulnerable sectors.
Decline in exports adds urgency
Data released by the Commerce Ministry on Monday revealed that India’s exports to the US dropped from USD 8.01 billion in July to USD 6.86 billion in August. Officials acknowledged that the decline adds urgency to the ongoing talks, though they reiterated that protecting long-term interests outweighs short-term concessions.
Washington’s expectations
Peter Navarro, Trump’s adviser, said on Monday that India was “coming to the table,” pointing to Modi’s conciliatory tone. “India has some of the highest tariffs of any major country and very high non-tariff barriers. We have to deal with that,” he said during a television interview.
Meanwhile, US ambassador-designate to India Sergio Gor confirmed during his Senate hearing that Modi has been invited for trade discussions in Washington with US Trade Representative Jamieson Greer.
Conclusion
The latest round of engagement signals cautious optimism, with both sides maintaining a “positive frame of mind,” according to Commerce Secretary Sunil Barthwal. However, Indian officials remain wary of Trump’s unpredictable style of decision-making, where presidential authority often outweighs institutional processes.
As trade negotiators work to bridge gaps, the coming weeks will determine whether the talks lead to a breakthrough or extend the stalemate that has slowed one of the world’s most significant bilateral economic relationships.