India, US Hold Trade Talks, Both Sides Describe Them As "Positive"

Talks between the US and India on a bilateral trade agreement, the first since 50% tariffs were imposed by Donald Trump, have been described by both sides as "positive".

"Assistant US Trade Representative Brendan Lynch had a positive meeting in Delhi with his counterpart Ministry of Commerce and Industry Special Secretary Rajesh Agrawal on September 16 to discuss next steps in bilateral trade negotiations," the US Embassy spokesperson said after the talks on Tuesday. 

A statement by the Ministry of Commerce and Industry soon after expressed a similar sentiment and said both countries have decided to ramp up efforts to arrive at a trade deal

"Acknowledging the enduring importance of bilateral trade between India and the US, 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 ministry said. 

Mr Lynch and his team had reached India on Monday night for the talks, which were described by sources in the Indian government not as the sixth round of discussions between the countries on a trade deal, but a "precursor" to them. 

Ties between the US and India had witnessed a noticeable slide after a 25% penalty for New Delhi's purchase of Russian oil - in addition to 25% tariffs - was announced on July 30 and took effect on August 27. 

India, which has termed the tariffs unfair, has said it is perplexed by the logic behind them because China is the biggest purchaser of Russian oil and the European Union buys the most amount of LNG from the country.

Statements by US President Donald Trump, who has called India's economy 'dead' and aides like his trade adviser Peter Navarro, who has termed New Delhi's purchase of Russian oil 'blood money', have only exacerbated tensions. 

A thaw was noticed last week, however, when Mr Trump said negotiations on a trade deal are on, and that he expects a successful conclusion.

"I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister 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!" Mr Trump had posted on his social media website Truth Social.

This was followed by a post on X by PM Narendra Modi who expressed similar views and said India and the US are natural partners.

"India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest... I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people," the PM wrote.

After negotiations began in February, India and the US had expected to finalise the first part of the bilateral trade agreement by the fall of this year. Five rounds have already taken place, but the sixth, which was scheduled to be held between August 25 and 29, was postponed.