India and the United States will resume high-level trade talks in New Delhi on Tuesday, just weeks after Washington slapped punitive tariffs on Indian exports, a move that has already slowed shipments and rattled trade flows. Rajesh Agarwal, India’s chief negotiator and special secretary in the commerce ministry, confirmed that U.S. Trade Representative for South Asia Brendan Lynch will make a one-day visit to the capital to meet Indian officials.
The talks come at a crucial moment: India’s exports fell to $35.1 billion in August, down from $37.24 billion in July, marking a nine-month low. Its trade deficit narrowed slightly to $26.49 billion. Exports to the United States, India’s largest trading partner, took a particularly sharp hit — dropping to $6.86 billion from $8.01 billion the month before.
The U.S. move to raise tariffs by an additional 25 percent — taking the total duties on Indian goods to 50 percent — was aimed at pressuring New Delhi over its continued imports of Russian oil, which Washington says undercuts its sanctions regime. The impact of these higher tariffs is expected to weigh even more heavily on Indian exporters in the coming months.
While Agarwal offered no specifics on what will be discussed, he emphasized that both countries are committed to “fast-tracking” negotiations. The outcome of the meeting could set the tone for future bilateral trade relations at a time when geopolitical and economic pressures are running high.