India, US to intensify efforts for early conclusion of trade deal, says MEA

The meeting between Lynch and India’s chief negotiator Rajesh Agrawal marked the resumption of talks for a bilateral trade agreement after a hiatus of almost two months

Published on: Sep 19, 2025, 17:57:27 IST

By Rezaul H Laskar

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New Delhi: India and the US have agreed to intensify efforts for the early conclusion of a mutually beneficial trade agreement at a recent meeting of senior officials from both sides, the external affairs ministry said on Friday, against the backdrop of efforts to repair bilateral ties hit by US President Donald Trump’s punitive tariffs.

Discussions between an American team led by assistant US trade representative Brenden Lynch and Indian interlocutors in New Delhi this week were “positive and forward-looking”, external affairs ministry spokesperson Randhir Jaiswal said.

The meeting between Lynch and India’s chief negotiator Rajesh Agrawal marked the resumption of talks for a bilateral trade agreement after a hiatus of almost two months. Trump’s decision to double tariffs on Indian goods by imposing a 25% punitive levy over Russian oil purchases—and the near-daily criticism of India’s relations with Russia by senior US administration officials—had resulted in strains in bilateral relations not witnessed in the past two decades.

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Jaiswal said the US team led by Lynch had meetings at the commerce ministry on September 16 to “take forward the ongoing negotiations for a trade deal”. He added, “The discussions were positive and forward-looking, covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement.”

The remarks by Jaiswal echoed the stance of the commerce ministry following the talks this week. The US embassy also said Lynch had a “positive meeting” with his counterpart to discuss the “next steps in bilateral trade negotiations”.

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India and the US have held five rounds of talks on the bilateral trade agreement since the terms of reference for the negotiations were framed in March. The two sides had intended to conclude the first tranche of the pact by October, but hurdles emerged as the US demanded unfettered market access to sectors such as dairy, agriculture, and Micro, Small, and Medium Enterprises (MSMEs). India was unwilling to concede to these demands, with the government setting the protection of farmers and small businesses as “red lines” for the trade negotiations.

US negotiators pulled out of the sixth round of talks scheduled for August in New Delhi amid sharp criticism from US officials over India’s purchases of Russian energy and military hardware. A turnaround began this month after Trump and Prime Minister Narendra Modi exchanged positive messages. Trump referred to Modi as a “great prime minister”, and both leaders expressed confidence about concluding the trade negotiations.

ABOUT THE AUTHOR
Rezaul H Laskar
Rezaul Hasan Laskar is Foreign Editor with the Hindustan Times, which he joined in 2015. He began as a journalist in his hometown of Shillong in northeast India and has worked in newspapers and wire services over the years. He moved to New Delhi in 1997 and initially focused on defence, national security, Jammu and Kashmir and the northeast, while also working of foreign policy and international relations. He has been part of the media delegation accompanying PMs on foreign visits and has reported from destinations ranging from Tibet to Ukraine. Between 2007 and 2013, he was the Press Trust of India correspondent in Pakistan, one of only two Indian journalists allowed to report from the country. He extensively covered Pakistan’s domestic politics and the life of the common people, as well as the fallout of the 2008 Mumbai attacks on India-Pakistan relations and the subsequent trial in Pakistan of the suspects involved in the attack. As part of his reportage in Pakistan, he travelled the breadth of the country, from the Swat Valley to Balochistan. Reza’s first gig in journalism was writing a weekly music column, and music – especially classic rock – remains a keen interest. He is also a movie buff and a keen photographer.Read More

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