Discussions with US on trade deal positive, both sides to push for early conclusion: Commerce Ministry

New Delhi: The day-long discussions with the visiting US team on a bilateral trade deal were positive, and both sides agreed to push for an early and mutually beneficial conclusion of the agreement, the Commerce Ministry said on Tuesday.

"It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement," the ministry said in a statement after a day-long meeting with the US officials.

The discussions with visiting US Chief Negotiator Brendan Lynch on the proposed bilateral trade agreement were positive and forward looking, it said.

Lynch, Assistant US Trade Representative for South and Central Asia, reached the national capital on Monday evening to hold deliberations on the proposed India-US bilateral trade agreement.

From India's side, the discussions were led by Rajesh Agarwal, Special Secretary, Department of Commerce.

An official said that both sides will continue the discussions in virtual mode and will also decide on a mutually convenient date for the next physical meeting.

The day-long talks are important as the US has imposed a steep 50 per cent tariff on Indian goods.

This was the first visit by a high-ranking US trade official after the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market for buying Russian crude oil.

India has earlier described the steep 50 per cent tariff as unfair and unreasonable.

In February, the leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement ( BTA). It was planned to conclude the first tranche of the pact by the fall of 2025.

So far, five rounds of negotiations have been held, and the talks for the sixth round, which were scheduled from August 25-29, were postponed following the imposition of the high import duties.

A senior commerce ministry official had said this meeting should not be viewed as the 6th round of negotiations, but a precursor to it.

The meeting took place within days, Prime Minister Narendra Modi warmly reacting to US President Donald Trump's positive assessment of trade ties between the two countries.

India has defended purchasing Russian crude oil, saying it was driven by national interest and market dynamics.

The government has repeatedly emphasised that it will protect the interests of its farmers, dairy producers, and MSMEs in all trade deals.