India, U.S. to Step Up Efforts for Trade Agreement: MEA

Quick Summary

• India and the U.S. have agreed to “intensify efforts” for an early conclusion of a mutually beneficial trade agreement, according to MEA spokesperson Randhir Jaiswal.
• A U.S. delegation led by Assistant USTR Brenden Lynch held discussions with India’s Ministry of Commerce on September 16, 2025, which were described as “positive and forward-looking.”
• The efforts towards a trade agreement stem from concerns over pending issues such as the 25% penalty tariffs imposed by the U.S. in August for India purchasing Russian crude oil.
• President Donald Trump called Prime Minister Narendra modi on his birthday but has maintained that tariffs are necessary to pressure Russia regarding Ukraine.
• The U.S. has revoked the sanctions waiver issued in 2018 for India’s work at Iran’s Chabahar port under the Iran Freedom and Counter-Proliferation Act (IFCA). After September 29,personnel involved may face sanctions.
• India is currently evaluating the implications of this revocation on its strategic connectivity projects through Chabahar port aimed at accessing Central Asia.

Indian Opinion Analysis

The current developments reflect both challenges and opportunities in india-U.S. relations. While progress on a trade deal signals commitment from both sides to strengthen economic ties,unresolved tariff disputes underline persistent friction points linked to geopolitical considerations such as Russian crude imports.

The revocation of sanctions waivers for Chabahar port complicates India’s strategic goals in Central Asia, where connectivity remains vital for reducing dependency on Pakistan’s transit routes. These broader issues highlight how india’s foreign policy must balance cooperation with global partners while safeguarding its regional interests.

Both nations’ emphasis on their “special partnership” suggests that ongoing negotiations could eventually yield pragmatic outcomes despite temporary setbacks.

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