India-US Trade talks resume as USTR Brendan Lynch arrives in New Delhi

India and the United States have resumed Bilateral Trade Agreement (BTA) negotiations today, as U.S. Assistant Trade Representative Brendan Lynch arrived at Vanijya Bhawan in New Delhi. This session serves as preparatory groundwork for the sixth round of India-US trade talks, originally scheduled for August but postponed after a U.S. decision to impose a 50% tariff on select Indian goods.

Key Highlights of the India-US Trade Negotiations

1. Preparations for Sixth Round
Lynch’s arrival marks the start of technical meetings ahead of formal talks. Special Secretary Rajesh Agrawal leads the Indian delegation, underscoring New Delhi’s intent to accelerate trade discussions.

2. Dairy Imports Standoff
A major sticking point remains U.S. dairy exports milk, cheese, and ghee to India. With India as the world’s largest milk producer, local dairy farmers fear market disruption from cheaper U.S. imports. Cultural factors also play a role: milk from cows fed with animal-derived enzymes like rennet is viewed as “non-vegetarian” by many Indian consumers.

3. Ambitious Trade Target
India and the United States aim to boost bilateral trade from $191 billion (approximately Rs.15.85 lakh crore) to $500 billion (around Rs.41.5 lakh crore) by 2030. Recent trade data shows India’s exports to the U.S. grew by 21.64% to $33.53 billion, equivalent to about Rs.2.78 lakh crore during April to July 2025. Meanwhile, imports from the U.S. rose 12.33% to $17.41 billion, or approximately Rs.1.44 lakh crore in the same period.

Statements from Leaders

Donald Trump, U.S. President, expressed confidence that ongoing talks “would soon reach a better outcome.”

Piyush Goyal, Union Commerce Minister, stated at a global investor conference on September 2 that he expects to finalise the BTA by November, restoring momentum to stalled negotiations.

As New Delhi hosts the preparatory meetings, both sides will work to reconcile U.S. demands for dairy market access with India’s commitment to protecting its small-scale farmers. The resolution of this core issue will be pivotal for successful conclusion of the sixth round and meeting the 2030 trade goal. With just two months until the projected November deadline, diplomatic and technical teams from India and the U.S. face intense negotiations ahead.