India, US hold bilateral trade talks, both sides describe discussions 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 also echoed 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.

Lynch and his team reached India on Monday night for the talks.

Ties between the US and India had turned sour after the Trump administration imposed a 25% penalty on New Delhi's purchase of Russian oil in addition to 25% tariffs .

US-India tariff war

The Trump administration, which was earlier viewed as India-friendly, has slapped a 25 percent tariff on the South Asian country for its high tariffs on American exports and another 25 percent for purchasing oil from Russia, which is fighting a war against Ukraine.

Since the conflict in Ukraine began in early 2022, India significantly increased its imports of discounted Russian crude oil—now comprising over 30 percent of its total crude imports.

Indian refineries then export refined petroleum products globally, which critics, especially in the U.S., argue indirectly supports Russia’s war effort by funneling money into its economy.

In response, the US proposed tariffs and trade measures targeting India’s exports to discourage this behavior.

India said that, like any major economy, it will take all necessary measures to safeguard its national interests and economic security.

Modi unequivocally said India won't compromise on the interests of farmers, fishermen and livestock rearers.