India says trade talks with US were ‘positive’

MUMBAI: India said trade talks with the United States on Tuesday were “positive” and added that both countries had decided to “intensify efforts” to clinch a deal.

Ties between New Delhi and Washington have been under tension since US President Donald Trump raised tariffs on most Indian exports to 50 percent last month in retaliation for New Delhi’s continued purchases of Russian oil.

White House officials have accused Indian oil refiners of profiteering and argued that New Delhi’s decision to buy Russian crude has helped finance Moscow’s war in Ukraine.

But over the last week, the leaders of both countries have offered more conciliatory public statements and said they remain committed to continuing trade negotiations.

And on Tuesday, Indian and US trade officials held discussions in the capital New Delhi.

India, US to hold trade talks in New Delhi on Tuesday, negotiator says

The US delegation included Brendan Lynch, assistant trade representative for South and Central Asia.

“Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal,” an Indian commerce ministry statement said on Tuesday evening.

“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement,” the statement added.

Despite being one of the first few countries to start trade negotiations with Washington, India has so far failed to secure a deal that would ease its tariff burden.

Exporters in the world’s most populous country have already warned of cancelled orders and potentially significant job losses.

Trump’s decision to mix issues of war and peace with trade by bumping up duties on most Indian goods from 25 percent to 50 percent has also further complicated matters.

Experts believe that despite both sides pushing forward, a trade deal still will require tough negotiations.

“Any progress hinges on Washington rolling back the oil-linked 25 percent duty. Without that, no breakthrough is politically or economically viable,” Ajay Srivastava of the Global Trade Research Initiative, a New Delhi-based think-tank, said in a note on Tuesday.