India and US seek breakthrough in day-long trade talks

September 16, 2025

India and the US are holding trade talks in Delhi, raising hopes for the resumption of stalled bilateral agreement negotiations that were previously derailed after President Trump imposed a 50% tariff on Indian goods. India has characterized the current meeting as a "discussion" rather than formal negotiations, aimed at exploring pathways to an agreement. The tariffs, implemented partly as a penalty for India's purchases of Russian oil and weapons, have already impacted Indian exports including garments, shrimp, and jewelry, causing production and livelihood challenges.

Who is affected

Indian exporters of garments, shrimp, gems and jewelry to the US
Production workers and others dependent on these export industries
Millions of small farmers in India whose interests are being protected
US agricultural exporters seeking access to India's market
Consumers in both countries who would be impacted by any trade agreement

What action is being taken

A team led by US trade negotiator Brendan Lynch is meeting with Indian commerce ministry officials in Delhi
Officials from both countries are discussing how to reach a trade agreement
The US and India are continuing negotiations to address trade barriers between the two countries
Both nations are actively working through disagreements in key sectors including agriculture and dairy

Why it matters

The 50% tariffs imposed by Trump have already impacted Indian production and livelihoods
The relationship between these major allies has deteriorated rapidly due to trade tensions
Agriculture and dairy remain key sticking points in the negotiations
The US views India's 1.4 billion population as a major untapped market
India is protecting its agricultural sector for food security and to safeguard millions of small farmers

What's next

No explicit next steps stated in the article

Read full article from source: BBC