India, US vow to push for early trade agreement

Trade discussions between Indian and US officials on Tuesday were “positive” and “forward-looking”, New Delhi said, after President Donald Trump struck a more conciliatory tone following punitive tariffs on India over its Russian oil purchases.

Trump and Indian Prime Minister Narendra Modi said they spoke by phone on Tuesday to mark the latter’s 75th birthday, which falls on Wednesday, and Trump said he thanked Modi for his help in ending the war between Russia and Ukraine, but gave no details.

A US delegation led by Brendan Lynch, assistant US trade representative for South and Central Asia, met Indian trade officials headed by Chief Negotiator Rajesh Agrawal in New Delhi.

“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement,” India’s commerce ministry said in a statement, also without giving details.

Talks covered bilateral trade ties, including a possible India-US trade deal, it added.

Both sides are now expected to hold a formal sixth round of trade negotiations.

However, it was not immediately clear whether New Delhi would meet Trump administration’s demand to cut Russian oil purchases, or open its agriculture and dairy sector for the US companies, a major demand in the negotiations.

The call was the first publicly known between Trump and Modi in three months.

Modi posted his thanks on X to Trump for the birthday greetings and added: “Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights. We support your initiatives towards a peaceful resolution of the Ukraine conflict.”

Trump posted on his Truth Social platform: “Just had a wonderful phone call with my friend, Prime Minister Narendra Modi. I wished him a very Happy Birthday! He is doing a tremendous job. Narendra: Thank you for your support on ending the War between Russia and Ukraine.”

Neither gave any detail of any agreement on Ukraine, but the call appeared to be a sign of further thawing of US-Indian tensions, which blew up in recent months raising questions about the future relationship between the partners, which share concerns about China.

Trump last month imposed a 25% punitive levy on Indian imports from August 27, doubling overall tariffs to 50%, as part of Washington’s pressure campaign on Moscow over its invasion of Ukraine.

A planned US delegation visit to New Delhi from August 25-29 was cancelled after talks stalled, with India resisting US demands to open its vast farm and dairy markets.

India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July, trade ministry data showed on Monday.

Exporters have warned the full impact of higher tariffs would be felt from September, once the new duties took effect.