US trade negotiators have arrived in India to resume discussions on the Bilateral Trade Agreement (BTA), marking the first in-person talks since the imposition of tariffs by the Trump administration. Here are five key aspects to monitor as these discussions unfold:
The shadow of tariffs: The talks occur against the backdrop of the Trump administration's 50% tariffs on Indian goods, including a 25% penalty for India's purchase of Russian oil. India has criticized these tariffs as "unfair and unreasonable". The US, on the other hand, has expressed concerns about India's high tariffs and non-tariff barriers. Overcoming this disagreement will be crucial for progress.
Rescuing a free trade deal: Officials in New Delhi view these talks as an opportunity to salvage a free trade agreement that was jeopardized by the tariffs that took effect on August 27, 2025. The outcome of the meeting will determine the timeline for the sixth round of BTA negotiations.
Key agendas: Several critical issues are on the table, including tariff and non-tariff barriers for agricultural products, energy purchases, intellectual property protections, and digital trade. Both sides are also aiming to ease regulatory barriers and address concerns of US companies in sectors like e-commerce, medical devices, and agriculture. India is expected to maintain its stance on agriculture and dairy to protect the interests of farmers and MSMEs.
The balancing act of strategic autonomy: India's longstanding policy of strategic autonomy, particularly its ties with Russia and BRICS, has been a point of friction with the US. The US has criticized India's import of Russian oil, with some officials accusing India of profiting from the war in Ukraine. India defends its energy procurement decisions as driven by national interest and market dynamics.
Roadmap for the future: The immediate goal of the meeting is to establish a roadmap for addressing trade-related matters. It is not considered the next round of BTA negotiations but rather a preliminary discussion to determine how to move forward. The discussions will take place at multiple levels, including negotiating teams and ministerial discussions. Both countries have expressed a positive outlook regarding trade issues.
Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is leading the US delegation, while Rajesh Agarwal, Special Secretary in the Department of Commerce, is representing India. These talks are seen as a crucial step toward finalizing the first part of the trade deal by the end of the year, as agreed upon by President Trump and Prime Minister Modi in February.
