The sixth round of India-US trade negotiations is set to begin Tuesday in New Delhi, after being delayed since late-August. The talks come against the backdrop of a bruising dispute over tariffs imposed by Washington, and disagreements over access to India's agriculture and dairy markets.

The US delegation, led by Brendan Lynch, chief American trade envoy, will meet the Indian team headed by Rajesh Agrawal, Special Secretary in the Department of Commerce. The resumption of dialogue is being positioned as a "precursor" step before more formalised negotiations over the next few months.

Tensions were triggered earlier this year when President Donald Trump called India a “very big tariff abuser”, before hitting Indian exports with 50 per cent duties. This included a 25 per cent “penalty” linked to India’s continued imports of Russian oil, which Washington accused of indirectly funding the Ukraine conflict.

Delhi has firmly rejected America’s rationale, branding the new tariff structure as “unreasonable, unfair, and unjust.” Officials have also pointed out that Western nations, including the United States itself, are still purchasing Russian commodities.

The tit-for-tat tariff battle is expected to directly impact up to $48 billion worth of Indian exports to the US. Key sectors at risk include textiles, agricultural goods, and lower-end electronics, though Indian authorities believe diversification of markets to the UK, EU, Japan, and West Asia could cushion the blow.

India has reiterated it will not compromise on protecting its farmers, livestock herders, and fishermen, arguing that flooding the domestic market with cheap US imports would wipe out the livelihoods of millions. Products like corn, soybeans, apples, almonds, and ethanol remain at the centre of these disagreements, with Delhi outright rejecting tariff concessions.

Hours ahead of the Delhi talks, US Commerce Minister Howard Lutnick sharpened his rhetoric, saying India might lose access to American markets unless it bought US agricultural goods. His specific complaint targeted India’s refusal to purchase US-grown corn, despite India being America’s largest export destination in several other categories.

Prime Minister Narendra Modi has adopted a hardline stance. In his Independence Day address at Red Fort, he declared “Modi is standing like a wall” to defend farmers and rural workers, vowing that India will never accept harmful compromises in trade policy.

Despite tensions, some optimism remains. Commerce Minister Piyush Goyal has expressed hope that a first tranche of trade agreements could be finalised by November, focusing on less contentious areas such as technology services, investment facilitation, and easing of non-tariff barriers.

Analysts caution that progress will be gradual, since US officials describe India as a "pretty closed market." Strategic trust between the two partners remains high, with both Modi and Trump publicly praising bilateral relations, yet agriculture and tariff barriers remain the hardest obstacles.

India has never granted major tariff concessions, even in agreements with Australia and Switzerland, signalling New Delhi’s consistency in defending sensitive domestic sectors. Negotiators believe this precedent strengthens India’s case to stand firm against Washington’s current demands.

Agencies