India and the US are holding a day of critical trade talks, sparking hope that stalled negotiations on a bilateral agreement will soon resume.
A team led by US trade negotiator Brendan Lynch is in Delhi to meet with officials from India's commerce ministry.
India expressed that the meeting does not mark the start of the next round of negotiations but rather a 'discussion' to explore how an agreement can be achieved.
Trade negotiations had previously stalled after US President Donald Trump imposed a hefty 50% tariff on Indian goods, partially as a penalty for India's purchase of Russian oil and weapons. India maintains its stance, defending its decision based on domestic energy needs and labeling the tariffs as 'unfair.'
The tariffs, combined with strong criticism from Trump and his key officials, have resulted in a swift deterioration in relations between the allies.
India exports various goods, including garments, shrimp, and gems and jewellery to the US, and these tariffs have impacted production and livelihoods significantly.
Thus, Tuesday's meeting between Indian and US officials is being closely monitored.
While the meeting is not classed as an official negotiation round, it focuses on discussing trade talks and identifying ways to reach an agreement, as stated by Rajesh Agrawal, who is leading India's side in the discussions.
Despite a round of negotiations being cancelled last month following Trump's tariff announcement and India's refusal to halt Russian oil imports, optimism has resurfaced in recent days. Trump administration officials have indicated a more conciliatory tone, indicating discussions are still ongoing.
US trade advisor Peter Navarro noted that 'India is coming to the table,' suggesting potential for progress.
In response to Trump's characterization of the US and India as 'continuing negotiations to address trade barriers,' Prime Minister Modi reflected a positive sentiment, emphasizing the closeness of the two countries as friends and partners.
However, significant challenges remain, particularly concerning agriculture and dairy, areas where India has traditionally resisted US pressure for greater market access, prioritizing food security and the livelihoods of small farmers.
Experts in India have argued that the country should maintain its protections in agriculture to uphold national sovereignty and food security.
