India and the United States are set to restart face-to-face trade talks, marking the first direct engagement since US President Donald Trump imposed steep tariffs on Indian goods. The 50% duties, which included a 25% penalty linked to India’s Russian oil purchases, were announced in late August. This sudden move disrupted the planned sixth round of trade discussions, which were supposed to take place in New Delhi between August 25 and 29.
Instead of those talks, the two nations relied on weekly online consultations to keep communication alive. However, progress was limited as the atmosphere remained strained. Now, with both governments signalling a willingness to improve trade ties, a team of American negotiators led by Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, has arrived in New Delhi for a single-day meeting.
Officials on both sides stress that this is not a full negotiation round but rather an initial step to create a roadmap. The goal is to prepare the ground for future formal discussions on the long-pending bilateral trade agreement.
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Focus on Trade Issues and Roadmap
The upcoming talks will focus purely on trade. Non-trade topics will not be part of the agenda. According to Rajesh Agrawal, Special Secretary in India’s Department of Commerce, the meeting will cover important areas like agricultural import duties, dairy products, and rules around commodity procurement. These issues have been sticking points in past discussions.
India has been firm about protecting sensitive sectors, particularly small farmers. Tariffs on farm goods, cultural concerns about animal feed, and safety standards around genetically modified food remain non-negotiable. Officials made it clear that India would not compromise on these points, even while seeking better trade relations.
On the American side, negotiators are expected to push for lower tariffs and fewer trade restrictions. Washington has often criticised New Delhi for having some of the world’s highest trade barriers. Recent comments by Trump’s adviser Peter Navarro reflected this, pointing to high tariffs and non-tariff barriers as hurdles that need to be addressed.
The meeting comes at a time when India’s exports to the US have slowed. Trade ministry data shows that exports dropped from $8.01 billion in July to $6.86 billion in August. The impact of tariffs has been felt by several industries, adding urgency to the need for dialogue.
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Shifts in Tone Between Leaders
Another notable aspect of these talks is the changing tone between the two countries’ leaders. In recent weeks, President Donald Trump has called Prime Minister Narendra Modi his “good friend” while speaking about trade. These statements were seen as an attempt to ease tensions.
Prime Minister Modi responded on social media, but his replies were more formal and focused on strengthening ties rather than personal friendship. Sources suggest this shift is deliberate, with India choosing to keep the discussions professional and grounded in national interests.
Despite differences, both sides seem to agree on the importance of dialogue. Senior Indian officials, including Commerce Secretary Sunil Barthwal, have pointed out that trade discussions have been continuing at various levels, including between ministers, diplomats, and technical teams. The current in-person meeting in New Delhi is described as a continuation of those efforts.
While cautious, Indian officials say there is a “positive frame of mind” in both countries when it comes to trade. The meeting is expected to set the stage for future negotiations, but for now, the emphasis remains on resolving immediate issues and building a clearer path forward.