India-US Trade Talks Back on Track as US Envoy Arrives in New Delhi

After a period of rising tensions and heated rhetoric, India and the United States are back at the negotiating table to revive talks for a long-awaited trade deal. The renewed push comes following a warming of ties between President Donald Trump and Prime Minister Narendra Modi, with US Assistant Trade Representative for South and Central Asia, Brendan Lynch, set to arrive in New Delhi on Monday night, September 15.

Lynch will hold discussions with India’s chief negotiator, Rajesh Agrawal, on Tuesday. Agrawal confirmed Lynch’s one-day visit and said both sides are looking to “fast-track” negotiations, though he declined to share further details.

The visit marks a crucial development in talks that had stalled last month. A US trade delegation was initially scheduled to travel to India between August 25 and 29, but the visit was called off amid escalating tensions. The US had imposed steep tariffs—25% in early August as part of a global trade reset, followed by another 25% targeting India’s continued purchase of Russian oil, which Washington says supports Moscow’s war effort in Ukraine.

During that period, US officials made sharp remarks, even touching on sensitive topics like caste and making personal jibes. India, for its part, took a more measured tone, defending its right to pursue independent foreign policy and citing its longstanding relationship with Russia.

Since then, rhetoric on both sides has cooled. Trump, in a recent shift, downplayed the oil-related sanctions, calling the Russia-Ukraine conflict “more of a Europe problem.” Notably, he refrained from criticizing India while urging the EU to take a tougher stance on China. The thaw appeared to begin after a series of social media interactions between Trump and Modi, which paved the way for talks to resume.

Negotiations have been ongoing since March-April for an interim trade deal, but progress has been slow. A major sticking point remains the US demand for greater access to India’s agricultural and dairy markets—something Modi has strongly resisted in order to protect Indian farmers.

While a full agreement by September now seems unlikely, both sides are aiming to finalize the first phase of the deal by October or November. Meanwhile, India’s exports to the US dropped to \$6.86 billion in August from $8.01 billion in July, with the full impact of tariffs expected to be clearer in the coming months.