• Source:JND
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India-US Trade Deal: India and the United States are set to resume face-to-face trade negotiations on Tuesday. US Assistant Trade Representative for South and Central Asia, Brendan Lynch, will arrive in New Delhi on Monday night to meet Indian officials led by the Commerce Ministry’s chief negotiator and special secretary, Rajesh Agrawal. While virtual discussions have been ongoing for months, this will be the first in-person engagement since the sixth round of talks, originally scheduled for August 25, was postponed.

The upcoming meeting will focus exclusively on trade issues, leaving other diplomatic matters to separate discussions. The bilateral trade agreement (BTA), which aims to more than double trade between the two countries to USD 500 billion by 2030 from the current USD 191 billion, remains a key goal. Both sides reportedly approach the talks with optimism, though pending issues, including US tariffs and India’s purchases of Russian oil, remain focal points of negotiation.

What’s At Stake In India-US Trade Talks

1. Doubling Bilateral Trade by 2030

The BTA aims to increase India-US trade from the current USD 191 billion to USD 500 billion by 2030. This would involve addressing multiple tariff barriers, export competitiveness, and regulatory alignment to foster smoother trade flows.

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2. Pending Trade Disputes

Key issues include US tariffs on Indian imports and concerns over India’s energy and defence dealings with Russia. Resolving these disputes is crucial to creating a mutually beneficial trade environment.

3. Energy And Agricultural Commitments

The US seeks strong assurances from India to reduce oil purchases from Russia and to utilise US maize for ethanol production. These are significant points of negotiation as they directly affect bilateral trade balances and compliance with US policy objectives.

4. Personal Diplomacy Between Leaders

The ongoing discussions are reportedly bolstered by the cordial rapport between Prime Minister Narendra Modi and President Donald Trump. Recent social media exchanges between the leaders have set an optimistic tone, signalling a willingness on both sides to reach a timely and strategic trade agreement.

5. Premium Cheese, GM Corn Could Unlock Trade Talks

Resumption of trade talks, along with symbolic Indian concessions like limited premium cheese imports or GM corn for ethanol, could pave the way for phased tariff reductions. However, any rollback depends on tangible progress on issues critical to the US, which negotiator Brendan Lynch will evaluate.

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The outcome of Tuesday’s meeting will set the course for subsequent rounds of negotiation, addressing trade-related barriers while maintaining a focus on broader bilateral cooperation. Both countries aim to leverage this dialogue to stabilise trade relations and achieve long-term economic goals.