India and the US held a positive day-long meeting to fast-track negotiations on a bilateral trade pact.
Talks come in the wake of a 50 per cent US tariff on Indian goods tied to Russian crude purchases.
Both sides plan further virtual and in-person discussions, aiming to finalize the agreement by fall 2025 while safeguarding domestic interests.
The Commerce Ministry said on Tuesday that the day-long talks with the visiting US delegation on a bilateral trade deal went positively and that both parties will work to reach an early and advantageous agreement.
"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.
According to PTI, positive and forward-looking conversations were had regarding the proposed bilateral trade deal with visiting US Chief Negotiator Brendan Lynch.
Lynch, the U.S. Assistant Trade Representative for South and Central Asia, arrived in the nation's capital Monday night to discuss the proposed bilateral trade pact between the United States and India.
Rajesh Agarwal, Special Secretary, Department of Commerce, led the talks on behalf of India.
According to an official, the parties will continue their virtual discussions and choose a time that works for both of them for the next in-person meeting.
PTI reported that given that the US has put a hefty 50 per cent tariff on Indian imports, the day-long negotiations are crucial.
After a 25 per cent tax and an additional 25 per cent penalty were imposed on Indian goods entering the US market for purchasing Russian crude oil, this was the first visit by a senior US trade official.
India has previously called the high tax of fifty per cent unjust and irrational.
Officials were instructed by the two nations' leaders to discuss a proposed Bilateral Trade Agreement (BTA) in February. The pact's first tranche was supposed to be finalised by the fall of 2025.
Five rounds of negotiations have already taken place, and after the hefty import taxes were imposed, the sixth round of talks—which was supposed to take place from August 25 to 29—was postponed.
This conference should not be seen as the sixth round of discussions, but rather as a prelude to it, according to a senior trade ministry official.
Reportedly, in response to US President Donald Trump's favourable evaluation of trade relations between the two nations, Prime Minister Narendra Modi arranged the summit in a matter of days.
India has justified its purchase of Russian crude oil, claiming that market forces and national interest were at play.
The government has repeatedly emphasised that it will protect the interests of its farmers, dairy producers, and MSMEs in all trade deals.
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