Negotiations between the US and India regarding bilateral agreement on trade, the first since Donald Trump put 50% tariffs, have been termed as positive by both parties.
The talks about bilateral trade between the US and India took place on Tuesday after which the spokesperson of the US embassy announced that the Assistant US Trade Representative Brendan Lynch had a good meeting with his counterpart, the Special Secretary of the Ministry of Commerce and Industry, Rajesh Agrawal in Delhi on the same day to discuss the next steps in bilateral trade talks between both nations.
A recent statement by the ministry of commerce and industry echoed the same feeling and stated that both nations have resolved to increase efforts to reach a trade agreement.
The discussions were constructive and future-oriented to address all the elements of the trade agreement as one of the major historical significance of bilateral trade between the US and India was recognized. The ministry said that it had decided to redouble efforts to attain early conclusion of a mutually beneficial Trade Agreement.
On Monday night, Mr Lynch and his team flew down to India to hold the talks which were termed by the Indian government sources as not the sixth round of talks between the two countries in trying to seal a trade deal, but a precursor to the talks.
Relations between the US and India had seen a visible downturn following a 25 percent penalty on New Delhi to purchase Russian oil on top of 25 percent tariffs being announced on July 30 and coming into effect on August 27.
India, which has described the tariffs as unfair, has indicated that it is confused by the rationale of such tariffs since China is the largest buyer of the Russian oil and the European Union purchases the largest quantity of LNG of the nation.
The words of the US President, Donald Trump, who has labeled the Indian economy as dead, the help of such advisors as his trade counselor Peter Navarro, who has labeled the New Delhi acquisition of Russian oil as blood money, have only tensed the situations.
However, a thaw was observed last week when Mr Trump announced that talks are underway on a trade agreement, and he anticipates that it will be successful.
My pleasure is to inform you that negotiations are still underway between India and the United States of America to cover the Trade Barriers between the two Nations. In the coming weeks, I would like to talk to my very good friend, Prime Minister Modi. I have no doubt but there will be nothing wanting to bring about an eventual success to both our Great Countries! Mr Trump had published on his social media platform Truth Social.
This was followed by a post by the PM Narendra Modi on X in which he said the same thing and added that India and the US are natural partners.
India and the US are good friends and natural allies. I believe that our talks on trade will be the channel to open the unlimited possibilities of the India-US partnership. We are making efforts in our teams to make an end to these deliberations as soon as possible…. I will also be excited to talk to President Trump. The PM wrote we will collaborate to achieve the goal of having a brighter and more prosperous future of our people.
Since the talks started in February, India and the US had hoped to complete the initial section of the bilateral trade agreement by the fall of this year. It has already been determined that the sixth round that was due to be conducted between August 25 and 29, has been postponed.
In February, the heads of both nations instructed their officials to discuss a proposed Bilateral Trade Agreement ( BTA). The first tranche of the pact was scheduled to come to an end by the fall of 2025.
To date, the negotiations have been in progress on five rounds with the sixth round which had been planned between August 25-29 being postponed after the introduction of the high import duties.
One of the senior officials of the ministry of commerce had indicated that this gathering was not to be considered the 6th round of talks but a prelude to the talks.
The conference was held in a few days, and Prime Minister Narendra Modi responded rejoicingly to the positive evaluation of the trade relations between the two states expressed by the US President Donald Trump.
India has justified its buying of Russian crude oil and said it was an act of national interest and market forces.
The government has in numerous occasions pointed out that it will safeguard the interests of its farmers, dairy makers and MSMEs in every trade bargain.
The US-Indian ties had been experiencing a visible downward trend following a 25 per cent penalty on Indian acquisition of Russian oil – on top of 25 per cent tariffs – was declared on July 30 and would become effective on August 27.
The further tariff action by Trump on India was a punishment on purchasing Russian oil. Nonetheless, the feeling between the two parties was shifting gradually with the state of India Prime Minister Narendra Modi referring to the US President Donald Trump as a dear friend in one of the social media posts after Trump had given optimistic remarks about India.
Positive and progressive deliberations
The government in a statement issued by the Press Information Bureau (PIB) of India said that the bilateral trade relationship between the two countries has a long history of importance. The negotiations were characterized as positive and future oriented touching upon different points of the suggested trade agreement. Both parties highlighted the need to increase the level of effort towards developing the early realization of a win-win Trade Agreement.
The USTR team visit is timely as both India and the United States are eager to solve the trade problem and become more cooperative. It was decided that the negotiation would go on to discuss critical issues, in order to come up with a holistic and favourable agreement between the two nations.
The talks demonstrate the continued effort of both the US and India to establish positive economic bonds, lower trade obstacles, and enhance each others prosperity by the well-constructed trade agreement. The increased efforts are an indication of mutual interest in having a strong and mutually advantageous trade relationship.
Statements made by Trump on the resumption of trade talks in India
The USTR team visit to India is a major milestone in solving the existing tension between India and the United States especially on the issue of trade barriers. Even prior to the Ukrainian conflict, the Trump administration had already placed tariffs totaling up to 50 percent on Indian products, with the main reason being India buying Russian crude oil. These tariffs were initially identified to be 25 percent and they were later raised by an additional 25 percent in August 2025, which had worsened the bilateral relations.
Nevertheless, recent overtures on both halves of the border such as words by President Donald Trump have indicated a shift towards de-escalating these tensions and trade talks. Trump was optimistic that the trade barriers would be overcome, and he reiterated his intention to keep on with the discussions with Prime Minister Modi terming him as a good friend and the talks would end successfully.
PM Modi embraces Trump trade relations remarks
In his turn, Prime Minister Modi responded positively to the statements made by Trump, stating that he was very glad the relations between them were assessed in such a way. He has highlighted the robust and progressive Comprehensive and Global Strategic Partnership between India and the US.
This dialogue explains the enthusiasm of both countries to enhance their strategic bond and settle trade disputes. As the negotiations concerning the Bilateral Trade Agreement continue, both India and the US are heading towards a win-win trade deal, which is an indicator of the bright and positive direction of the trade even amid the tariff issues.
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