India-US Trade Deal: America is busy in damage control over the deteriorating relations with India, talks have started on trade agreement

India-US Trade Deal: After the heavy tariffs imposed on India by US President Donald Trump, there was tension in the trade relations between the two countries. Now to handle this situation, the Trump administration has started taking steps towards damage control. According to the latest update, the chief negotiators of India and the US have started discussions on a proposed trade agreement on Tuesday. The main objective of this dialogue is to remove the uncertainties arising from the heavy tariffs, which have created challenges especially for Indian exporters.

Who is involved in the talks?

The US side is being led by Assistant US Trade Representative for South and Central Asia Brendan Lynch in this important dialogue. At the same time, Rajesh Aggarwal, Special Secretary in the Department of Commerce, is the chief negotiator from India. Lynch arrived in India late Monday night, and this is his first such visit since the US imposed a 25 percent duty and an additional 25 percent penalty on Indian goods in response to the purchase of Russian crude oil. India has strongly opposed this combined duty of 50 percent, calling it unfair. This one-day dialogue between the two sides is considered an important step towards resolving the tariff dispute and normalizing trade relations.

Background of tariff dispute

The main reason for the tariff imposed by the US on Indian goods is believed to be India's purchase of crude oil from Russia. India has clarified its position on this issue, saying that its energy purchases are based on national interests and global market dynamics. India's stance has been that it relies on diverse sources to meet its energy needs, and oil purchases from Russia are part of this policy. However, the US considered it against its interests and imposed heavy duties on Indian exports, which increased trade tensions between the two countries.

Response of PM Modi and Trump

Prime Minister Narendra Modi recently responded warmly to US President Donald Trump's positive assessment of the trade relations between the two countries. Trump expressed his desire to strengthen India-US trade relations, after which this dialogue has started. India has stressed that it will prioritise protecting the interests of farmers, dairy producers, and MSMEs (small, micro and medium enterprises) in its trade agreements. The Indian government has repeatedly made it clear that it will support policies that are in line with national interests and promote the country's economic growth.

Expectations from the talks

The talks are expected to reduce trade tensions between the two countries and progress towards a balanced trade agreement. Experts believe that the talks can find new opportunities to reduce or remove tariffs as well as promote trade between the two countries. Trade relations between India and the US have long been strong, and these talks can be an important step towards further strengthening this relationship.