U.S. trade negotiator Brendan Lynch will arrive in New Delhi tonight to restart discussions on the bilateral trade agreement (BTA), with formal talks set to resume on Tuesday. This marks the sixth round of negotiations, which were earlier postponed in August after U.S. officials withdrew amid heightened tensions.
The BTA, central to both governments’ economic strategies, aims to boost bilateral trade to $500 billion by 2030, up from the current $191 billion. However, progress has been complicated by Washington’s decision to impose 50% tariffs on Indian goods, including a 25% penalty linked to India’s purchase of Russian oil.
The United States has pressed India for reduced tariffs on corn, soybeans, apples, almonds, ethanol, and greater access for dairy exports. India has resisted these demands, citing risks to the livelihood of its small and marginal farmers. Recent data show India’s exports to the U.S. fell to $6.86 billion in August, down from $8.01 billion in July.
The backdrop to these negotiations has been politically charged. Former President Donald Trump recently criticized India’s alignment with Russia and China at the Shanghai Cooperation Organisation summit, warning of tougher tariff measures. Yet the tone has softened in recent days, with Trump signaling optimism: “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries.”
Prime Minister Narendra Modi echoed the sentiment, calling India and the U.S. “close friends and natural partners” while expressing confidence that talks would unleash the “limitless potential” of the partnership.
