A Quick Visit with a Focus on Trade
Brendan Lynch, Assistant US Trade Representative for South and Central Asia, will be in India on September 16 for a single day of discussions. According to Additional Commerce Secretary Rajesh Agarwal, the visit is not part of a formal negotiation round but is limited to consultations on trade-related issues. Officials have clarified that no other aspects of the bilateral relationship are on the table during this meeting.
Lynch plays a crucial role in shaping and implementing US trade policy across the region. His responsibilities include overseeing the US-India Trade Policy Forum, a platform that has historically dealt with issues ranging from market access to tariffs. His background includes stints as USTR’s Director for India and as part of the Office of Agricultural Affairs, giving him significant insight into both economic and political sensitivities tied to trade.
The Trade Numbers Behind the Visit
India’s trade data has been under close scrutiny in recent weeks. Goods exports for August were reported at 35.10 billion dollars, while imports stood at 61.59 billion dollars. Although the trade deficit narrowed slightly, exporters remain under pressure. Labour-intensive industries such as textiles and gems and jewellery are facing challenges after the United States, under President Trump, imposed punitive tariffs of up to 50 percent on Indian exports.
These tariffs are designed to pressure India over its continued purchases of Russian oil, placing New Delhi at a disadvantage compared to competitors like Vietnam and Bangladesh. With such barriers in place, even a minor narrowing of the trade deficit is seen as a sign of resilience by Indian exporters.
Diplomacy and Policy at Play
Despite friction over tariffs, both countries have recently signaled renewed goodwill. President Trump has described Prime Minister Modi as a dear friend and expressed optimism about the trade talks. Modi responded by emphasizing that India and the United States remain close friends and natural partners, confident that ongoing discussions can unlock significant opportunities for both nations.
Finance Minister Nirmala Sitharaman has also confirmed that India’s diplomatic team is deeply engaged in negotiations. In addition, Commerce Secretary Sunil Barthwal highlighted that despite global headwinds and policy uncertainties, Indian exporters have performed well. He pointed to government measures designed to support exporters as proof that policy has been paying off.
The Bigger Trade Picture
While Lynch’s visit is focused solely on trade issues with the United States, India is also pursuing agreements elsewhere. The next round of Free Trade Agreement talks with the European Union is scheduled for October 6 to 10 in Brussels, with officials treating it as a priority. At the same time, the Indian government has stressed the need to diversify trade partnerships and reduce reliance on certain geographies, a move aimed at shielding supply chains from future disruptions.
What to Expect Next
Lynch’s one-day stop in India will not resolve every issue, but it represents an important signal that conversations are active and ongoing. For India, the hope is to ease the pressure from tariffs while protecting exporters who are already competing fiercely in global markets. For Washington, the visit is a chance to reaffirm its influence in South Asia while ensuring that its trade policies align with broader geopolitical goals.
The Bottom Line
Brendan Lynch’s visit comes at a critical juncture for India-US trade relations. Tariffs have added new layers of complexity to an already sensitive partnership, but both sides appear willing to keep the dialogue alive. With Indian exporters showing resilience and the government eager to expand ties with multiple partners, the outcome of these talks will be closely watched.
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