The sixth round of talks over an India-United States trade agreement will take place shortly, sources told NDTV Profit Wednesday. These talks had been scheduled for late-August but were pushed back, indefinitely, amid tension after President Donald Trump's 50 per cent tariff on Indian imports.
The talks, when they do take place, will likely be hosted by Delhi, sources said.
Confirmation of resumption of talks was also provided by Donald Trump on Truth Social. The President said the two countries "are continuing negotiations to address the Trade Barriers".
"I look forward to speaking with my very good friend, Prime Minister (Narendra) Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!" he signed off.
That was after Trump, while making an announcement in the White House, called the India-US ties a "very special relationship" and insisted Mr Modi and he "would always be friends".
"There is nothing to worry about. We just have moments on occasion."
PM Modi responded warmly; he said he "deeply appreciates and fully reciprocates" the US President's sentiments and positive assessment of India-US bilateral relations.
Despite a protracted stand-off - over India refusing the US access to price-sensitive agriculture and dairy markets, something Trump has repeatedly demanded - sources said the two sides remain hopeful of a deal, or at least an early framework, can be agreed by the October deadline.
However, India intends to stick to its stand on agriculture and dairy; i.e., it will not allow cheaper American goods to dilute these markets and threaten the livelihood of crores of farmers, livestock holders, and fishermen and women, most of whom operate at a subsistence level.
In addition, India has also nixed proposals to reduce tariffs on products like corn, soybeans, apples, almonds, and ethanol. Delhi believes allowing this will have affect Indian farmers.
Keeping the US at bay on these topics is also necessary, the Indian government believes, to protect agriculture-based MSMEs, which are involved in a range of pre- and post-harvest activities, livestock production and care, food processing, and assorted agri-services.
Prime Minister Modi has made it clear his government will not budge on this point.
READ | "Modi Stands Like Wall For Farmers": PM's Message Amid Trump Tariff Row
In his Independence Day speech from Delhi's Red Fort, he said, referring to himself in the third person to amp up the drama quotient, "Modi is standing like a wall against any harmful policy related to the farmers, fishermen and cattle herders... India will never accept any compromise."
In August a senior US official warned that differences could not be resolved overnight to arrive at a trade deal. "Our challenges with India... they've always been a pretty closed market... (and) there are a host of other kind of geopolitical issues," the unnamed US official told news agency Reuters.
India has never given any duty concessions to any of its trading partners, including Australia and Switzerland, with whom it has signed trade agreements.
The stand-off over a bilateral trade agreement has also been because of the 50 per cent tariff slapped on India by the US. The tariff - which India described "unjust, unreasonable, and unfair" includes a 25 per cent 'penalty' for the purchase of Russian oil and weapons.
Trump has blamed India for 'feeding' Russia's war on Ukraine. India, meanwhile, has pointed to double standards on the US' part, saying Western nations continue to buy from Russia with no punishment.
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India has said it will buy Russian oil so long as it makes financial sense.
With input from agencies
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