India-US Trade Talks Resume in New Delhi: Tariffs, Russian Oil, and Modi’s ‘Forward-Looking’ Quote in Focus
- 16th September 2025
- 05:30:00 PM
- 2 min read
Summary
India and the US resumed high-level trade talks in New Delhi on September 16, 2025, with Assistant USTR Brendan Lynch meeting India’s chief negotiator Rajesh Agrawal. Discussions come amid Washington’s 50% tariffs on Indian exports, linked to Russian oil imports. Prime Minister Narendra Modi called ties with the US “forward-looking,” but experts warn progress hinges on removing punitive duties.
Mumbai | September 16 – Negotiations between India and the United States have restarted in New Delhi, with both sides seeking progress on a bilateral trade agreement (BTA) despite disputes over tariffs and Russia-linked oil imports.
Negotiations Restart Amid Tariff Dispute
Assistant USTR for South and Central Asia Brendan Lynch arrived in New Delhi for talks with India’s chief negotiator Rajesh Agrawal, Special Secretary in the Department of Commerce. Agrawal confirmed that both sides will attempt to “fast-track” the trade dialogue.
Talks resume as Washington’s total duties on Indian goods stand at 50%—following an additional 25% tariff imposed on August 27, justified by India’s continued purchases of Russian crude. The Global Trade Research Initiative (GTRI) has cautioned that “substantial progress is unlikely until the US removes the additional 25% tariff.”
Trade Data Shows Strain
India’s exports slipped to $35.10 billion in August from $37.24 billion in July, while imports fell to $61.59 billion, narrowing the trade gap to $26.49 billion. Shipments to the US declined to $6.86 billion in August, compared to $8.01 billion in July.
For April–August, exports to the US totalled $40.39 billion. Economists warn that the full impact of punitive tariffs will be reflected in September trade data.
Political Context and Outlook
India and the US have held five rounds of talks since March 2025, with a sixth round delayed after tariff hikes. The US has pressed for greater access to India’s farm and dairy markets, while India has sought equitable treatment for its exports.
Prime Minister Narendra Modi, responding to US President Donald Trump’s remarks, posted:
“Deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties. India and the US have a very positive and forward-looking Comprehensive and Global Strategic Partnership.”
While optimism remains at the political level, experts note that a breakthrough before the planned October–November timeline will depend on Washington easing its tariff stance.
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