India-US Trade Talks Back On Track As US Negotiator Arrives in Delhi Tonight

After weeks of strain over tariffs and Russia-related oil purchases, India and the United States are resuming negotiations for a long-pending trade deal. The renewed momentum follows a fresh wave of warmth between Prime Minister Narendra Modi and US President Donald Trump.

Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is set to land in New Delhi on Monday night for a day-long visit. Lynch will meet India's chief negotiator Rajesh Agrawal on Tuesday, with both sides aiming to "fast-track" the discussions, Agrawal confirmed to Reuters.

The talks had been in limbo after Washington imposed steep tariffs on Indian goods in August. A 25 per cent tariff came into effect in the first week of the month as part of a global US trade reset, followed by another 25 per cent levy on August 27 specifically penalising India's continued purchase of Russian oil. A US team's visit scheduled for late August was scrapped amid these tensions.

Negotiations for an interim trade deal began in March-April but slowed down over contentious issues, particularly Washington's push to open up India's agricultural and dairy markets to American products. New Delhi has held firm, with PM Modi stressing that farmers' interests will not be compromised. The two sides had initially hoped to finalise a pact by September, but now the focus is on completing the first stage by October or November.

India's exports to the US dropped to $6.86 billion in August from $8.01 billion in July. Analysts say the true impact of the higher tariffs will be felt in the coming months, as the second round only took effect at the end of August.

President Trump, meanwhile, acknowledged the political risks of his trade measures. "Look, India was their biggest customer. I put a 50 per cent tariff on India because they're buying oil from Russia. That's not an easy thing to do. That's a big deal and it causes a rift with India," he said in an interview with Fox and Friends on Friday. Trump added that the issue of Russian oil was "a Europe problem much more than our problem."

Despite the friction, Washington has been emphasising the importance of its ties with New Delhi. US Secretary of State Marco Rubio said last week that India is "one of the top relationships the US has in the world today," calling the bilateral equation an "extraordinary transition."

With Lynch's visit, both sides will now attempt to bridge differences and salvage a deal that has become a test case for the resilience of India-US economic relations.