A U.S. trade delegation led by chief negotiator Brendan Lynch met with Indian officials in New Delhi on September 16 to push forward talks on a long-pending trade agreement. The Indian side was led by Rajesh Agarwal, special secretary in the commerce department.

In a statement, India’s commerce ministry said both sides agreed to “intensify efforts” for the early conclusion of a “mutually beneficial” deal.

While discussions between India and the United States began earlier this year, progress has been uneven, with tensions flaring over tariffs imposed by the U.S. on Indian goods.

The talks have seen some momentum in recent weeks, helped in part by a public display of camaraderie between Prime Minister Narendra Modi and U.S. President Donald Trump on social media. However, deep differences remain — particularly over Washington’s decision to impose an additional 25% tariff on Indian goods, citing New Delhi’s continued purchase of Russian oil amid the Ukraine war.

According to a report by the Global Trade Research Initiative (GTRI), a New Delhi-based trade think tank, the U.S. appears “eager” to secure a deal, but has taken a harsh public tone towards India during negotiations.

“The challenge will be how much India concedes without undermining regulatory autonomy or economic sovereignty,” the report said, warning that New Delhi is unlikely to allow unrestricted access to U.S. agriculture and dairy products. Prime Minister Modi has consistently maintained that Indian farmers will be protected “no matter the cost.”

At one point, U.S. officials suggested that India’s slow pace in negotiations was itself a reason for the tariffs.

Initially, a trade pact was expected to be finalized by September. That timeline now looks uncertain, with the first phase of the deal potentially delayed until November.

India’s exports to the U.S. dropped to $6.86 billion in August, down from $8.01 billion in July. The full impact of the additional tariffs, which took effect at the end of August, will likely be reflected in next month’s data.