India-US Trade discussions have been described as “positive” and “forward-looking,” signaling a thaw in tensions following punitive U.S. tariffs imposed on Indian imports. Both countries now appear determined to move beyond recent frictions and explore a more balanced partnership.
A delegation led by Brendan Lynch, the U.S. Assistant Trade Representative for South and Central Asia, met with Indian officials including Chief Negotiator Rajesh Agrawal in New Delhi. Together, they agreed to intensify efforts toward concluding a trade agreement that is advantageous to both countries.
At the heart of the talks are contentious issues such as U.S. demands that India reduce its purchases of Russian oil, open its agriculture and dairy sectors to U.S. businesses, and address other barriers seen as impediments to fair trade. India, for its part, has not committed publicly to fulfilling all those demands.
The discussions follow U.S. tariffs on Indian exports—raised to 50%—that have already begun impacting trade volumes. India’s exports to the U.S. dropped from $8.01 billion in July to $6.86 billion in August.
This week also marked the first public call in three months between US President Donald Trump and Prime Minister Narendra Modi. Apart from birthday greetings, both leaders expressed commitment to enhancing the robust, comprehensive partnership between their countries, including seeking peaceful resolution in the Ukraine conflict.
As both sides gear up for a formal sixth round of negotiations, business and trade watchers will be closely watching for concrete actions—particularly on sensitive sectors like agriculture, dairy, and energy—that could determine whether this warming signals real change or just diplomatic rhetoric.
