India-US trade talks: Both sides call 'in-person' meeting in Delhi 'positive'

After the talks on Tuesday (September 16), the US Embassy spokesperson said that the assistant US trade representative Brendan Lynch had a “positive” meeting in Delhi with his counterpart Rajesh Agrawal, special secretary at the ministry of commerce and industry, on September 16 to discuss next steps in bilateral trade negotiations. The future course of action was to be discussed at this meeting.

'Positive'

The ministry of commerce and industry too said both countries have decided to ramp up efforts to arrive at a trade deal.

The ministry in his statement said that acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward-looking, covering various aspects of the trade deal. “It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement," the ministry statement added.

Lynch and his team had reached India on Monday night for the talks, which were described by sources in the Indian government not as the sixth round of discussions between the countries on a trade deal, but a "precursor" to them. However, this marks the first in-person dialogue between the two nations since high-stakes negotiations for a trade agreement broke down.

Also read: US team in Delhi for trade talks, first after Trump's 50 pc tariffs on India

The US delegation is expected to stay for only a day, said reports.

Earlier deadlock

There have already been five rounds of talks and this will be the sixth round of discussions, originally scheduled between August 25 and 29 but later postponed. Both countries had aimed to conclude an interim trade deal by the fall of 2025.

However, talks hit a deadlock over US demands for greater access to India’s agricultural and dairy sectors, areas that New Delhi considers non-negotiable.

India’s chief negotiator Rajesh Agarwal had told the media that India and the US have been engaged in talks at various levels, and the talks they were holding on Tuesday was "to see what the future of talks will be".

Strain in US-India ties

Trade talks were stalled after the US slapped an additional 25 per cent penalty for New Delhi's purchase of Russian oil - in addition to 25 per cent tariffs - was announced on July 30 and took effect on August 27.

India, which has criticised the tariffs as unjust, has said it is perplexed over US's rationale—pointing out that China remains the largest buyer of Russian oil, while the European Union leads in imports of Russian liquefied natural gas (LNG).

Remarks by US President Donald Trump—who has described India's economy as "dead"—along with comments from his trade adviser Peter Navarro, who labelled India's acquisition of Russian oil as "blood money," have further strained diplomatic relations and heightened tensions between the two nations.

Thaw in bilateral ties

The talks on Tuesday signals a thaw in bilateral ties after weeks of criticism from Washington, followed by a gradual softening of tone from US President Trump last week in a bid to salvage ties with India.

Also read: US chief negotiator Brendan Lynch to arrive in Delhi for India-US trade talks

"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, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!" Trump had posted on his social media website Truth Social.

This was followed by a post on X by PM Narendra Modi who spoke on similar lines and said India and the US are natural partners.

PM Modi said, "India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest... I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people."

India and the United States, having initiated trade negotiations in February, had anticipated concluding the initial phase of their bilateral trade agreement by this fall. While five rounds of talks have already been completed, the sixth round, originally slated for August 25 to 29, was deferred.

Also read: Thaw in Indo-US ties? PM Modi responds to Trump's 'positive' remarks