Any advancement regarding the India-US trade agreement mainly depends on Washington lifting the extra 25 percent tariff related to Russian oil on India, and no significant progress is expected without this, according to India-based trade think tank Global Trade Research Initiative (GTRI) as discussions between both nations commenced.

The GTRI report contended that negotiations will continue to progress slowly unless Washington demonstrates true flexibility. It is believed that there is no immediate solution and India should get ready for an extended effort.

India and the United States are resuming trade negotiations today in New Delhi after a pause.

The US delegation, headed by Assistant USTR for South and Central Asia Brendan Lynch, is engaging with Indian officials for the first time since President Donald Trump enacted a further 25 percent tariff on Indian products from August 27, citing "buying Russian oil" — in addition to the existing 25 percent reciprocal tariffs that have been effective since August 7.

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GTRI states that the US appears eager to finalize a trade agreement with India, despite its officials frequently employing "disparaging language" toward New Delhi in public forums.

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GTRI recommended that India should stand strong on agriculture and dairy, considering them not as trade matters but as vital livelihood issues for numerous millions of farmers.

"The difficulty will be determining how much India allows without compromising regulatory independence or economic sovereignty," it stated.

 

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It emphasized that unless Washington removes the extra 25 percent tariff, progress is improbable.

"The GTRI report concluded that India should officially document its objections, possibly through an amicus curiae brief at the US Supreme Court, to assist US companies contesting the tariffs and maintain the negotiation opportunity."