New Delhi: In a significant development for bilateral commerce, India and the United States held trade discussions on Tuesday, which both sides characterized as “positive” and forward-looking, signaling a potential thaw in relations after months of friction. These talks, the first since the imposition of 50% tariffs by the US, have revived hopes for progress in the long-pending trade negotiations between the two economic powerhouses.
Assistant US Trade Representative Brendan Lynch met with India’s Ministry of Commerce and Industry Special Secretary Rajesh Agrawal in Delhi to deliberate on the next steps in formalizing a bilateral trade deal. Following the discussions, a spokesperson for the US Embassy highlighted the constructive nature of the engagement, emphasizing the shared commitment to advancing trade cooperation.
Echoing this sentiment, India’s Ministry of Commerce and Industry issued a statement noting that both nations “acknowledged the enduring importance of bilateral trade” and agreed to intensify efforts toward reaching a mutually beneficial trade agreement. The ministry emphasized that the discussions were “positive and forward-looking,” touching upon multiple aspects of the proposed trade framework and underscoring a shared intent to accelerate the negotiation process.
According to sources within the Indian government, the September 16 meeting should not be viewed as the sixth formal round of trade negotiations, but rather a “precursor” aimed at setting the stage for substantive talks in the coming weeks. Lynch and his team had arrived in India late Monday night, reinforcing the high-level nature of these discussions.
The backdrop to the talks has been tense. Relations between the US and India cooled sharply after the announcement of a 25% penalty on New Delhi for its purchase of Russian oil, compounded by the existing 25% tariffs that took effect on August 27. India has repeatedly described the tariffs as unfair and perplexing, especially given that China remains the largest buyer of Russian oil, and the European Union imports the highest volume of Russian LNG.
US rhetoric has further strained relations. President Donald Trump’s prior characterization of India’s economy as “dead,” coupled with trade adviser Peter Navarro’s labeling of India’s Russian oil imports as “blood money,” had escalated tensions. However, optimism returned last week when Trump confirmed that trade negotiations were ongoing and expressed confidence in a successful outcome.
On his social media platform Truth Social, President Trump stated: “I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi… I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”
Prime Minister Narendra Modi echoed these sentiments in a post on X, describing India and the US as “close friends and natural partners” and expressing optimism that the negotiations would unlock the “limitless potential” of the bilateral partnership. “Our teams are working to conclude these discussions at the earliest… We will work together to secure a brighter, more prosperous future for both our people,” he wrote.
Negotiations between India and the US began in February with the expectation that the first segment of a bilateral trade agreement could be finalized by autumn 2025. Although five rounds of talks have already been held, the sixth round, originally scheduled for late August, was postponed, making Tuesday’s discussions crucial for setting the agenda for upcoming negotiations.
Analysts view the positive tone from both sides as a critical step toward easing tensions and potentially resolving longstanding trade disputes, particularly in the areas of tariffs, market access, and energy imports. With momentum building, the next few weeks are likely to be decisive in determining the trajectory of India-US trade relations.