U.S.-India Trade Talks: A Step Toward Reconciliation Amid Tensions

The recent U.S.-India trade discussions in New Delhi have been labeled as "positive" and "forward-looking." This comes after President Donald Trump adopted a conciliatory tone following the imposition of punitive tariffs on India due to its Russian oil purchases. The call between Trump and Prime Minister Narendra Modi, marking Modi's birthday, highlighted ongoing efforts to strengthen bilateral relations.

Brendan Lynch, the assistant U.S. trade representative for South and Central Asia, led a U.S. delegation in talks with Indian officials headed by Chief Negotiator Rajesh Agrawal. Both sides expressed a commitment to intensifying efforts to conclude a mutually beneficial Trade Agreement. The discussion covered topics such as bilateral trade ties and a potential India-U.S. trade deal, with a formal sixth round of negotiations expected soon.

Despite the positive discussions, unresolved issues remain, including the U.S. demand for India to reduce Russian oil purchases and open its agriculture and dairy sectors to American companies. The recent call suggests a potential easing of U.S.-Indian tensions, especially concerning shared concerns about China. Meanwhile, India's exports to the U.S. have dipped, with exporters warning that the full impact of increased tariffs may be felt in September.

(With inputs from agencies.)