The US delegation is headed by chief negotiator Brendan Lynch from the United States Trade Representative (USTR), while India’s team is led by Darpan Jain, Additional Secretary in the Department of Commerce. The discussions are set to last for four days.
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The talks are expected to center on various issues, including market access, non-tariff barriers, customs and trade facilitation, investment promotion, and economic security cooperation.
Brendan Lynch, who leads the American delegation, joined the USTR in 2013, serving in the agency’s Office of Agricultural Affairs.
He has managed bilateral agricultural negotiations with countries in South and Central Asia, as well as Taiwan, Israel, Central America, the Caribbean, Mexico, Canada, and Russia, before becoming USTR’s Director for India.
Recently, Lynch served as Deputy Assistant U.S. Trade Representative for South and Central Asia.
Notably, agriculture poses one of the most challenging aspects of the negotiations. Reports indicate that India prefers to maintain its current 10% across-the-board tariff regime rather than accept conditions impacting sovereign decisions, particularly regarding oil purchases and sensitive agricultural products.
A government official informed The Indian Express that there is “a sense of urgency” surrounding the negotiations, as the US is expected to unveil a new tariff framework under Section 301 from July 24.
This urgency follows a February ruling by the US Supreme Court that invalidated President Donald Trump’s reciprocal tariff policy, leading Washington to implement a uniform 10 percent tariff on imports from all countries for a 150-day duration.
Why India-US bilateral trade agreement matters?
The US was India’s second-largest trading partner in the fiscal year ending March 2026.
India’s exports to the US increased by 0.92% to $87.3 billion, whereas imports from the US rose by 15.95% to $52.9 billion during this period. Consequently, India’s trade surplus with the US decreased to $34.4 billion from $40.89 billion the previous year.
India and the US are currently finalizing the legal text for the trade framework established earlier this year.
A significant provision within it suggests lowering US tariffs on Indian goods to 18%. This proposal emerged after escalating trade tensions had pushed tariffs on certain Indian exports to as high as 50%.
However, negotiations remain complex. India has also insisted on continuing its purchases of Russian crude oil despite pressure from Washington D.C.
What could be included in the bilateral trade agreement between the US and India?
Among the proposals under discussion in the trade framework is a reduction in Indian tariffs on several American products, especially in the agriculture and industrial sectors. This may include items such as animal feed ingredients, fruits, tree nuts, soybean oil, wine, and spirits.
The framework also aims to significantly expand bilateral trade. India has indicated that it could boost purchases of US goods worth around $500 billion over five years, encompassing energy products, aircraft, technology equipment, and coking coal. Nevertheless, as negotiations are ongoing, the final terms of the agreement could be subject to change before a deal is finalized.
The US has also initiated Section 301 investigations regarding “structural excess capacity” and “forced labour.” Indian officials have reportedly responded by asserting that trade surpluses are a normal result of global economic conditions and highlighted that India has ratified international conventions prohibiting forced labour.
The US-India relationship beyond trade
Last week, India and the US established a framework for cooperation in the critical minerals sector amid rising concerns over China’s export controls on rare earth elements.
US Ambassador to India Sergio Gor recently emphasized the expanding collaboration in areas such as advanced manufacturing, energy, digital trade, and emerging technologies.
He also pointed out the significant share of generic medicines that the US imports from India, underscoring the importance of pharmaceutical ties between the two nations.
India is also anticipated to become part of trusted supply chain networks in fields like artificial intelligence, semiconductors, and quantum computing.
India-US trade deal said to be near completion
Recent statements from US officials suggest that negotiations may be approaching their final phase. USTR Jamieson Greer indicated last week that he expects to meet with Commerce Minister Piyush Goyal soon and aims to finalize the agreement based on the framework already established between the countries.
Gor also expressed optimism that a bilateral trade deal could be signed in the upcoming weeks or months, stating that only “1 percent” of the agreement remains unresolved, with negotiators actively working to address the remaining gaps.
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