India and the United States signaled progress in trade discussions on Tuesday, with New Delhi describing the talks as “positive” and “forward-looking.” The meeting came shortly after President Donald Trump softened his stance following steep tariffs imposed on Indian imports over its continued purchase of Russian oil.
President Trump and Indian Prime Minister Narendra Modi spoke by phone on Tuesday, coinciding with Modi’s 75th birthday. Trump expressed gratitude for Modi’s support in ending the Russia-Ukraine war, though no details were provided. Modi responded on X, thanking Trump for the wishes and reaffirming India’s commitment to strengthening the India-U.S. Comprehensive and Global Partnership while supporting peace efforts in Ukraine.
Trade negotiations were led by Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, and Rajesh Agrawal, India’s Chief Trade Negotiator. India’s commerce ministry confirmed that both sides agreed to intensify efforts toward an early conclusion of a mutually beneficial trade agreement. Talks focused on bilateral trade, including the possibility of a formal India-U.S. trade deal, and will continue with a sixth round of negotiations.
Key sticking points remain, including Washington’s demand for New Delhi to reduce Russian oil imports and open its agriculture and dairy markets to U.S. companies. These issues have previously stalled discussions, with the U.S. cancelling a delegation visit in late August after disagreements.
Tensions escalated last month when Trump imposed an additional 25% tariff on Indian imports, raising total duties to 50%. The move has already impacted trade flows: India’s exports to the U.S. fell to $6.86 billion in August from $8.01 billion in July. Exporters warn that the full impact will be felt in the coming months as higher tariffs take effect.
Despite challenges, the latest dialogue suggests renewed momentum in strengthening India-U.S. trade ties while addressing broader geopolitical concerns.