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
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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, reported news agency PTI.
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, reported PTI.
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 trade talks for the sixth round, which were scheduled from August 25-29, were postponed following the imposition of the high import duties, reported PTI.
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, reported PTI.
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.
Over the past few months, both sides have been negotiating an interim trade deal, though progress has been slow due to India's concerns over US demands to open up the agriculture and dairy sectors. These sectors remain sensitive for India as they provide livelihoods to millions of people.
India and the US initiated trade talks for a just, balanced, and mutually beneficial Bilateral Trade Agreement (BTA) in March this year, aiming to complete the first stage of the Agreement by October-November 2025.Initially, US President Donald Trump announced 25 per cent tariffs on Indian goods, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs.
A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.
The 50 per cent tariffs came into effect on August 27. US President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit. Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that his administration will match tariffs imposed by other countries, including India, to "ensure fair trade".
(With inputs from PTI)
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