India-US trade talks back on track amid tariff tensions: 'Positive, forward-looking'

India and the United States on Tuesday resumed face-to-face trade negotiations in New Delhi, with officials describing the discussions as “positive and forward-looking” as both sides push for an early conclusion of a bilateral trade agreement.

A US delegation led by Brendan Lynch, chief negotiator for the India-US Bilateral Trade Agreement (BTA), met with Indian counterparts headed by the Commerce Department Special Secretary Rajesh Agarwal during a daylong meeting that lasted about seven hours.

The Ministry of Commerce said the talks covered “various aspects of the trade deal,” adding that the two sides agreed to intensify efforts to reach a “mutually beneficial” agreement.

“Acknowledging the enduring importance of bilateral trade between India and the U.S., the discussions were positive and forward-looking... It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement,” the Commerce Ministry said in a statement.

The meeting came days after US President Donald Trump struck a more conciliatory tone on trade.

Last week, Trump said he was “certain” India and the US would have “no difficulty” reaching a deal, signalling optimism after months of tension over tariffs and oil purchases from Russia.

Trump-Modi phone call

On Tuesday, Trump said he had a “wonderful” phone call with Prime Minister Narendra Modi, during which he extended birthday greetings and thanked him for supporting US efforts to end the Russia-Ukraine war. The call came a day before Modi turned 75.

“Just had a wonderful phone call with my friend, Prime Minister Narendra Modi. I wished him a very Happy Birthday! He is doing a tremendous job. Narendra: Thank you for your support on ending the War between Russia and Ukraine!” Trump posted on Truth Social, signing off with his initials “DJT”.

Responding on X, Modi thanked Trump for his greetings and reiterated his commitment to strengthening India-US ties. “Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights. We support your initiatives towards a peaceful resolution of the Ukraine conflict,” the prime minister said.

The call was the first between the two leaders since June, when they spoke on the sidelines of the G7 summit in Canada.

India and the US had in February set a target to conclude the first tranche of the BTA by this fall. Five rounds of negotiations have been held so far.

The sixth round, scheduled for August 25–29 in New Delhi, was deferred after Washington imposed steep 50 per cent tariffs on Indian goods, including a 25 per cent penal levy over India’s oil purchases from Russia. Since then, the two sides have been holding weekly virtual consultations.

India’s exports to the US declined to USD 6.86 billion in August from USD 8.01 billion in July, official trade data showed.