New Delhi – India and the United States have officially resumed negotiations on a crucial bilateral trade agreement. This new round of talks marks a significant thaw in relations after a period of heightened tensions caused by the US imposition of a 50% tariff on certain Indian exports. The tariffs, which went into effect on August 27, were a direct response to India’s continued purchase of Russian oil.
The US delegation, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, arrived in New Delhi late Monday evening for the discussions. They are meeting with a team of Indian officials headed by Rajesh Agarwal, a senior official in the Commerce Ministry. This is the first in-person meeting between the two nations’ trade negotiators since the tariffs were imposed, which had led to the indefinite postponement of the previously scheduled sixth round of talks.
The resumption of negotiations follows a softening of rhetoric from Washington and a more conciliatory tone from US President Donald Trump. Last week, Trump expressed optimism about a successful trade deal, a sentiment that was reciprocated by Prime Minister Narendra Modi. PM Modi stated that the negotiations would “pave the way for unlocking the limitless potential of the India-US partnership.”
While officials in New Delhi view the talks as a vital step toward reviving the jeopardized trade agreement, they are approaching the discussions with caution. White House trade adviser Peter Navarro’s comment on Monday that “India was coming to the negotiating table” also underscored the high stakes of the meeting. The talks are expected to focus on a roadmap for addressing trade barriers and other contentious issues.