Written by The Banking Post
India on Tuesday described its latest trade talks with the United States as “positive” and “forward-looking,” signaling a possible thaw after weeks of tension over punitive tariffs and Russian oil imports.
A US team led by Brendan Lynch, Assistant Trade Representative for South and Central Asia, met Indian negotiators headed by Rajesh Agrawal in New Delhi. The two sides agreed to intensify efforts toward an early conclusion of a “mutually beneficial” trade agreement, India’s commerce ministry said.
The talks touched on a wide range of issues, including the prospect of a bilateral trade deal. A sixth round of negotiations is now expected. However, major sticking points remain—particularly Washington’s demands for India to scale back Russian oil purchases and open its agriculture and dairy markets to US companies.
The discussions came as US President Donald Trump and Prime Minister Narendra Modi held their first public phone call in three months. Trump wished Modi a happy 75th birthday and thanked him for support in ending the Russia-Ukraine war, though neither leader offered details. Modi, in turn, reaffirmed his commitment to strengthening the India-US partnership and voiced support for Trump’s peace efforts.
Relations between the two countries have been strained since Trump’s decision last month to double tariffs on Indian imports to 50 percent, a move that already dented exports. India’s shipments to the US fell to $6.86 billion in August, down from $8.01 billion in July. Exporters warn the full brunt of higher tariffs will be felt from September onward.
The latest engagement suggests both sides are keen to prevent further escalation, though whether common ground can be reached on contentious trade demands remains uncertain.
