India and US to Begin Critical Three-Day Trade Talks on December 10 Amid Tariff Tensions

On September 16, the US delegation previously visited India for trade discussions.

New Delhi:

India and the United States will begin three-day discussions regarding the initial phase of their proposed bilateral trade agreement in New Delhi starting December 10, according to sources. This meeting is significant as both nations are working to finalize the first tranche of their trade pact.

"The three-day discussions will commence on December 10 and conclude on December 12. These are not formal negotiation rounds," a source confirmed.

Deputy United States Trade Representative (USTR) Rick Switzer will lead the American delegation.

This visit marks the second time US officials have traveled to India since implementing a 25 percent tariff plus an additional 25 percent penalty on Indian goods entering the American market, imposed due to India's purchase of Russian crude oil.

US officials previously visited India on September 16.

On September 22, Commerce and Industry Minister Piyush Goyal led an Indian delegation to the United States for trade talks. Goyal had also visited Washington in May for similar discussions.

While Assistant US Trade Representative for South and Central Asia Brendan Lynch serves as the chief negotiator for the agreement from the American side, Joint Secretary in the Department of Commerce Darpan Jain leads the Indian team.

These discussions hold particular importance as Commerce Secretary Rajesh Agrawal recently stated that India is optimistic about reaching a framework trade deal with the US within this year, which would address the tariff issues benefiting Indian exporters.

While acknowledging that the comprehensive Bilateral Trade Agreement (BTA) will require more time, Agrawal indicated that India is engaged in extensive negotiations with the US on a framework trade deal to address the reciprocal tariff challenges faced by Indian exporters.

India and the US are conducting two parallel negotiations – one focused on a framework trade deal addressing tariffs and another on a comprehensive trade agreement.

In February, leaders from both countries instructed officials to negotiate an agreement.

The initial plan was to conclude the first tranche of the pact by fall 2025. To date, six rounds of negotiations have occurred. The agreement aims to more than double bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.

The US has maintained its position as India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (including USD 86.5 billion in exports).

The US accounts for approximately 18 percent of India's total goods exports, 6.22 percent of its imports, and 10.73 percent of its total merchandise trade.

According to exporters, this agreement is crucial as India's merchandise exports to the US declined for the second consecutive month in October, falling by 8.58 percent to USD 6.3 billion due to the substantial tariffs imposed by Washington.