US India trade talks restart in New Delhi from tomorrow. Here’s what on table

Chief negotiators from the United States and India will begin a crucial four-day round of talks in New Delhi on June 1, aimed at finalising the text of an interim trade pact. The meetings, scheduled to run through June 4, mark a major push to lock down an agreement whose initial framework was sketched out in February. The high-level discussions will be led by US Chief Negotiator Brendan Lynch and India’s Chief Negotiator Darpan Jain, Additional Secretary in the Department of Commerce. 

“Our current interim trade agreement is on the table for us to finalise, and that will unlock prosperity for both of our countries,” Ambassador Gor stated, indicating an expectation that the deal will be officially signed over the next few weeks and months. 

The negotiations arrive at a delicate time for bilateral commerce, requiring significant recalibration after a turbulent start to the year in US tariff policy. Under the initial framework established on February 7, the US had agreed to lower tariffs on Indian goods to 18% from 50%, which included removing an additional 25% tariff linked to India’s purchase of Russian oil.

However, a February 20 US Supreme Court ruling struck down Washington’s initial reciprocal tariff structure, leading to the temporary imposition of a uniform 10% global tariff. Because this uniform tariff narrowed the relative advantage India previously held over competing export economies, negotiators must now adjust the concessions to preserve the balance of the deal. 

What is on the table 

The four-day agenda in New Delhi covers both immediate market openings and broader structural alignments under the proposed Bilateral Trade Agreement (BTA): 

• Market access: India has offered to eliminate or reduce tariffs on a wide range of US industrial products and agricultural goods. This includes dried distillers’ grains (DDGs), red sorghum used in animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits. 
• Massive import commitments: New Delhi has indicated a willingness to purchase up to $500 billion worth of US goods over the next five years. This multi-billion-dollar commitment spans energy products, commercial aircraft and components, technology products, precious metals, and coking coal. 
• Regulatory & Customs facilitation: Both sides are working to streamline customs procedures, implement strict rules of origin to ensure benefits remain bilateral, and address non-tariff barriers that impede smooth supply chains. 
• Digital trade rules: The US is pushing for a robust set of bilateral digital trade rules to eliminate discriminatory or burdensome digital practices. 
• Economic security & Technology alignment: Mirroring deep strategic ties, discussions will focus on securing resilient supply chains, digital trade cooperation, and advanced technology integration, particularly in semiconductor and artificial intelligence sectors. 

The talks also come against the backdrop of friction. In March, the Office of the US Trade Representative (USTR) launched two separate Section 301 investigations involving dozens of nations, including India, concerning alleged excess industrial capacity and forced labour issues in global supply chains. India has strongly contested these allegations, arguing that the USTR notices lack a cogent rationale, and is actively pressing Washington to withdraw the probes. 

Despite these regulatory hurdles, the economic stakes remain immense. The US stands as India’s second-largest trading partner. In the recently concluded 2025-26 fiscal year, Indian outbound shipments to the US grew marginally by 0.92% to $87.3 billion, while Indian imports of US goods jumped 15.95% to $52.9 billion — narrowing India’s trade surplus to $34.4 billion.