US and Indian Trade Negotiators Meet in Delhi, Signaling Renewed Hope for Stalled Bilateral Agreement

In a significant diplomatic development, a U.S. trade delegation has arrived in New Delhi for a day of talks with officials from India’s commerce ministry. The meeting, which both sides are describing as a “discussion,” has sparked hope that a comprehensive bilateral trade agreement, stalled for months, may soon be back on track.

The U.S. team is led by trade negotiator Brendan Lynch, while India’s delegation is headed by Rajesh Agrawal. The meeting follows weeks of diplomatic friction that led to the suspension of negotiations. The talks had stalled after U.S. President Donald Trump imposed a hefty 50% tariff on Indian goods, citing India’s continued purchase of Russian oil and weapons. The tariffs have already impacted Indian production and livelihoods, leading to a swift and surprising deterioration in ties between the two allies.

Ahead of the meeting, Mr. Agrawal told local media that the discussions are “not an official round of negotiations but it will definitely be a discussion on the trade talks and on trying to see how we can reach an agreement between India and the US.” This follows a series of public statements from both sides that have fueled optimism. Last week, President Trump and Prime Minister Narendra Modi engaged in a positive exchange on social media, with Trump stating that negotiations are “continuing” and Modi reaffirming that the two nations are “close friends and natural partners.”

Recent comments from U.S. officials have also signaled a more conciliatory tone. US trade adviser Peter Navarro, a vocal critic of India in the past, stated that “India is coming to the table. We will see how this works.” Additionally, Sergio Gor, Trump’s nominee for the next US ambassador to India, expressed confidence that the deal “will get resolved in the next weeks,” noting that the teams are now “negotiating the nitty-gritty.”

Despite the renewed momentum, key disagreements remain. Longstanding sticking points, particularly in the agriculture and dairy sectors, have consistently prevented a deal from materializing. The U.S. has been pushing for greater access to India’s agricultural market, a demand that India has fiercely resisted, citing national food security and the interests of millions of small farmers. The meeting is being closely watched to see if the two countries can bridge these significant gaps.

About the US-India Trade Relationship

The United States and India share a robust and growing economic partnership. Bilateral trade in goods and services has expanded significantly over the last two decades. The two countries are key partners in technology, defense, and investment, with a shared interest in fostering a free and open Indo-Pacific.

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