Can India and the US strike a deal? Crucial trade talks begin June 1

New Delhi: India and the United States are set to hold a fresh round of trade negotiations from June 1 to June 4 in New Delhi, as officials work towards finalising an interim trade pact and pushing forward a broader bilateral trade agreement.

The talks will be led by chief negotiators Darpan Jain, Additional Secretary in India's Department of Commerce, and Brendan Lynch, the United States' lead trade negotiator.

Focus on interim trade agreement

The upcoming discussions are aimed at finalising the legal framework and operational details of the interim trade pact whose broad contours were agreed upon by both countries in February.

The agreement is expected to cover areas including market access, customs and trade facilitation, non-tariff measures, investment promotion and economic security cooperation.

The negotiations are also part of a larger effort to conclude a comprehensive India-US Bilateral Trade Agreement (BTA).

Trade framework may be revisited

The talks come after significant changes in the US tariff landscape.

In February, India and the US agreed on a framework under which Washington was expected to reduce tariffs on certain Indian goods. However, subsequent developments, including a US Supreme Court ruling against President Donald Trump's reciprocal tariff policy and the introduction of a temporary 10 per cent tariff on imports, altered the trade environment.

As a result, both sides may revisit elements of the original framework during the latest round of negotiations.

India offers wider market access

Under earlier proposals, India had indicated its willingness to reduce or eliminate tariffs on a range of US industrial and agricultural products.

These included animal feed products, tree nuts, fruits, soybean oil, wine and spirits, among other goods.

India also expressed interest in significantly increasing purchases of US products, including energy supplies, aircraft and aircraft parts, technology products, precious metals and coking coal over the next five years.

The discussions are taking place amid ongoing concerns over US trade investigations.

In March, the Office of the United States Trade Representative launched Section 301 investigations involving several countries, including India, related to supply chain and labour concerns.

India has strongly rejected the allegations and questioned the basis for the investigations.

Strong bilateral trade relationship

The United States remained India's second-largest trading partner during the 2025-26 financial year.

India's exports to the US rose to USD 87.3 billion during the period, while imports from the US increased to USD 52.9 billion.

Although India's trade surplus with the US narrowed compared with the previous year, both countries continue to view deeper economic cooperation as a strategic priority.

The June 1-4 negotiations are expected to play a key role in shaping the next phase of the economic partnership between the world's largest and fastest-growing major economies.