India, US Trade Talks Begin
Chief negotiators of India and the US have commenced talks on the proposed trade agreement to iron out issues in the wake of steep tariffs that have created uncertainties for exporters, an official said on Tuesday.
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India has characterized the steep 50 per cent tariff as unjust and disproportionate.
New Delhi:
The chief negotiators from India and the United States have initiated discussions on the proposed trade agreement to resolve issues arising from high tariffs that have generated uncertainties for exporters, according to an official statement on Tuesday.
The American delegation is headed by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, while India's team is led by Rajesh Agrawal, Special Secretary in the Department of Commerce.
Lynch arrived in India on Monday evening for single-day discussions with his Indian counterpart.
This marks the first visit by a senior US trade official following the implementation of a 25 per cent tariff plus an additional 25 per cent penalty on Indian products entering the US market due to India's purchases of Russian crude oil.
"The trade discussions have commenced," the official confirmed.
India has labeled the substantial 50 per cent tariff as unjust and disproportionate.
In February, leaders from both nations instructed officials to negotiate a proposed Bilateral Trade Agreement (BTA). The plan was to finalize the first phase of the agreement by autumn 2025. Five rounds of negotiations have been completed thus far, and the sixth round, originally scheduled for August 25-29, was postponed after the imposition of the significant import duties.
A high-ranking commerce ministry official clarified that the meeting between Lynch and Indian officials should not be considered the 6th round of negotiations but rather a preliminary discussion leading to it.
The official also mentioned that India and the US have been engaging in weekly virtual discussions.
This meeting occurs shortly after Prime Minister Narendra Modi warmly responded to US President Donald Trump's positive evaluation of trade relations between the two countries.
In defense of its Russian crude oil purchases, India has consistently maintained that its energy procurement decisions are guided by national interests and market dynamics.
The government has repeatedly stressed that it will safeguard the interests of its farmers, dairy producers, and MSMEs in all trade agreements.