India, US push for early conclusion of trade agreement

Prime Minister Narendra Modi with US President Donald Trump (File image)

India and the United States have decided to intensify efforts to “achieve early conclusion of a mutually beneficial” trade agreement, the commerce ministry said in a statement on September 16.

The statement was released following a meeting in New Delhi on September 16 between a team of officials from the office of United States Trade Representative, led by the Chief Negotiator Brendan Lynch with officials from Department of Commerce, led by Special Secretary Rajesh Agarwal.

The two sides acknowledged 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, according to the statement.

Lynch’s visit, as the Assistant U.S. Trade Representative for South and Central Asia, is crucial given that trade deal negotiations between India and the United States recently hit a rough patch after President Donald Trump decided to double tariffs on Indian exports to 50 percent.

The US's recent tariff move has left parts of India’s export basket exposed, though some key categories are insulated for now. Pharmaceuticals, petroleum and electronics are currently exempt from the steeper duty, covering roughly $28 billion of India’s $86.51 billion in shipments to the US in FY25.

The two nations opened talks for a Bilateral Trade Agreement in March and have conducted five rounds of negotiations, with the last one held in July in the US. The two teams were tasked with completing the first tranche of the pact by the fall of 2025.

However, the two sides have not yet announced the next round of trade talks, which was initially slated for August 25-29 in New Delhi, but was deferred.

Relations between India and the US has seen some improvement in recent days with Trump and Prime Minister Narendra Modi agreeing to resume trade talks.

Trump called Prime Minister Modi a “dear friend” and talked optimistically about the trade momentum. Modi, in turn, reaffirmed India and the US as “close friends and natural partners” and expressed confidence that current trade talks would unlock significant potential for both nations.