India, US begin talks on trade agreement amid tariff dispute

Chief negotiators of India and the US have commenced talks on the proposed trade agreement to iron out issues in the wake of steep tariffs that have created uncertainties for exporters, an official said on Tuesday.

Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is leading the American team, while Rajesh Agrawal, Special Secretary in the Department of Commerce, is India's chief negotiator.

Lynch arrived in India late Monday for a day-long talk with his Indian counterpart.

This is the first visit by a high-ranking US trade official after the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market for buying Russian crude oil.

"The trade talks have started," the official said.

India has described the steep 50 per cent tariff as unfair and unreasonable.

In February, the leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement ( BTA). It was planned to conclude the first tranche of the pact by the fall of 2025. So far, five rounds of negotiations have been held, and the talks for the sixth round, which were scheduled from August 25-29, were postponed following the imposition of the high import duties.

A senior commerce ministry official had said the meeting between Lynch and Indian officials should not be viewed as the 6th round of negotiations, but a precursor to it.

The official also said India and the US have been engaged in discussions through virtual mode on a weekly basis.

The meeting is taking place within days, Prime Minister Narendra Modi warmly reacting to US President Donald Trump's positive assessment of trade ties between the two countries.

Defending its purchase of Russian crude oil, India has been maintaining that its energy procurement is driven by national interest and market dynamics.

The government has repeatedly emphasised that it will protect the interests of its farmers, dairy producers, and MSMEs in all trade deals.