• Source:JND
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India-US trade talks: India and the United States will resume formal trade negotiations in New Delhi on Tuesday, seeking to find common ground after months of friction over tariffs, agricultural access, and India’s continued purchase of Russian oil. The talks come just weeks after US President Donald Trump imposed punitive tariffs of up to 50 per cent on Indian exports, sparking a sharp fall in trade volumes.

The one-day meeting will see US Assistant Trade Representative for South and Central Asia, Brendan Lynch, lead Washington’s team, while Commerce Ministry official Rajesh Agarwal will head India’s delegation. Both sides have indicated that while breakthroughs may take time, there is political will at the highest level to push discussions forward.

What India Expects From Trade Talks?

India is eager to get relief from sharp tariffs and resolve long-standing irritants that have adversely affected exporters. New Delhi has also emphasized that domestic priorities, most notably in agriculture and energy, cannot be sacrificed.

Here are the five key expectations and hurdles shaping the talks:

• Tariff Rollback:  India wants Washington to reconsider the 50 per cent tariff burden imposed on its goods last month. Officials cited by ANI argue that the engineering and textiles sectors are already suffering, with shipments to the US falling to a nine-month low. The immediate goal for New Delhi is to ease this shock.
• Agriculture and Dairy Access:  America continues to pressure India to open up its huge farm and dairy sectors. But New Delhi has indicated that such sectors are sensitive and not negotiable. Reaching a middle ground will be a key stumbling block in the negotiations.
• Russian Oil Purchases:  Washington has pressed India to scale down imports of discounted Russian crude, alleging that trade gains are funding Moscow’s war machine. India insists its energy security needs must come first and rejects being “singled out.” This divergence remains a thorny issue.
• Rules of Investment and Market Access: India is looking for easier access for its services sector, specifically IT and pharmaceuticals, while the US wants greater protection for American-based companies investing in India. Thus, these balancing investment rules will be key to making progress.
• Supply Chain and Strategic Alignment:  Both parties are seeking to strengthen supply chain resilience, particularly in electronics and crucial minerals. But the geopolitical tensions with India, strengthening its engagement with Russia and China, may complicate trust-building in this sphere.

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Political Signals Positive But Fragile

While US trade advisor Peter Navarro has charged India with having "very high tariffs and non-tariff barriers," President Trump recently adopted a more soothing tone, stating that a deal was "within reach." Prime Minister Narendra Modi has spoken in similar terms, having called the partnership one of "limitless potential."

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The negotiations are likely to lay the groundwork for a phased trade deal anticipated by late 2025. But the serious disparities over tariffs, agriculture, and Russian oil imply that progress will be piecemeal. For the present, exporters and investors will be keeping an eye out to see if Tuesday's meeting provides any tangible relief or not.