New Delhi: Talks have started between India and the US on the proposed trade agreement to iron out issues in the wake of steep tariffs that have created uncertainties for Indian exporters.
While Brendan Lynch, assistant US trade representative for South and Central Asia, is leading the American team, Rajesh Agrawal, special secretary in the Department of Commerce, is India’s chief negotiator.
Lynch arrived in India late Monday for the day-long talk with his Indian counterpart. This is the first visit by a high-ranking US trade official after the imposition of a 25% tariff and an additional 25% penalty for buying Russian crude, on Indian goods entering the US market.
India has described the steep 50% tariff as unfair and unreasonable.
Leaders of both countries had directed officials in February to negotiate a proposed Bilateral Trade Agreement ( BTA). It was planned to conclude the first tranche of the pact by fall of 2025.
So far, five rounds of negotiations have been held, and the talks for the sixth round, which were scheduled from August 25-29, were postponed following the imposition of the tariffs.
Officials have cautioned that the meeting between Lynch and Agarwal’s team should not be viewed as the 6th round of negotiations, but a precursor to it.
India and the US have been engaged in discussions through virtual mode on a weekly basis.
Tuesday’s meeting is being held days after Prime Minister Narendra Modi warmly reacting to US president Donald Trump’s positive assessment of trade ties between the two countries. India has always defended its purchase of Russian crude, maintaining that its energy procurement is driven by national interest and market dynamics.
While the US is keen for India to lift duties on imports of agricultural and dairy products,the government has repeatedly emphasised that it will protect the interests of its farmers, dairy producers, and MSMEs in all trade deals.