Trade discussions between Indian and US officials on Tuesday were described as “positive” and “progressive,” according to New Delhi. This follows President Donald Trump’s more conciliatory stance after imposing punitive tariffs on India due to its Russian oil purchases.
A US delegation headed by Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, met with Indian trade officials led by Chief Negotiator Rajesh Agrawal in New Delhi.
“Both parties agreed to intensify efforts for an early conclusion of a mutually beneficial Trade Agreement,” stated India’s commerce ministry, though they did not provide further specifics.
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The discussions included bilateral trade relations and the potential for an India-US trade agreement. A formal sixth round of trade negotiations is anticipated.
It remains uncertain if New Delhi will comply with the Trump administration’s demand to reduce Russian oil purchases or to open its agriculture and dairy sectors to U.S. companies, which are significant negotiation points.
Last month, Trump imposed a 25% punitive tariff on Indian imports, effective from August 27, effectively doubling the overall tariffs to 50% as part of Washington’s pressure on Moscow over its actions in Ukraine.
A planned visit by a U.S. delegation to New Delhi from August 25-29 was canceled after negotiations reached an impasse, with India resisting U.S. demands to open its extensive farm and dairy markets.
Data from the trade ministry on Monday showed India’s exports to the U.S. fell to $6.86 billion in August from $8.01 billion in July.
Exporters have cautioned that the full impact of these higher tariffs will become evident from September, once the new duties are in effect.
