India-US trade talks set to resume on Wednesday, first since Trump 2.0 exited record shutdown

Indian and American officials are set to engage in talks on Wednesday to explore a trade deal between the world's largest and fourth-largest economies. This marks the first official discussions between both sides after the US exited its longest-ever shutdown last month. Both sides will try to reach an agreement on all the pending issues during their scheduled discussions on December 10 and 11, according to sources.

Darpan Jain, Joint Secretary in the Ministry of Commerce, will be the chief negotiator from India. Jain is a Karnataka cadre IAS officer of the 2001 batch.

Rajesh Agrawal, who was the chief negotiator for five earlier rounds of talks, assumed charge as Commerce Secretary in October.

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US Deputy Ambassador for Trade Rick Switzer is leading a high-level American delegation that is on its official India visit from December 10 to December 12.

The development comes at a time when investors are keenly awaiting a bilateral trade agreement (BTA) between the US and India -- the world's largest and fourth-largest economies respectively. India remains optimistic about finalising the first tranche of a trade deal with the US within 2025, despite recent challenges in the global trade environment.

India-US Trade Deal | Both sides hopeful

Last month, Commerce Secretary Agarwal expressed hope that both sides would arrive at a solution within the calendar year itself. Over the last few weeks, talks between both sides have progressed substantially, though progress has been complicated by the Donald Trump 2.0 administration's tariff moves.

Earlier this year, the US president doubled a 25 per cent duty on Indian goods over India's continued purchase of Russian oil as part of reciprocal tariffs on countries where the US faces trade deficits.

Here are answers to a few frequenly asked questions (FAQs) on the subject:

What is a bilateral trade agreement (BTA)? A BTA is a trade pact between two countries that sets specific rules for trading goods and services with each other. Fundamentally, BTA aims to make trade easier, cheaper and more predictable while reducing barriers. Why is it important for two countries to arrive at a trade agreement? A trade pact helps two economies by lowering the barriers between them. This increases certainty and unlocks new opportunities for businesses and consumers on both sides. Why is it important for the world's largest and fourth-largest economies to achieve a trade deal? The US is India’s largest trading partner and India is among the fastest-growing major economies. A trade agreement, hence, can expand exports, attract investments, create jobs and reduce trade barriers for businesses on both sides. What is the current status of an India-US trade agreement? Although several rounds of negotiations have taken place over the past few months, both sides have yet to finalise the first tranche of the deal.

Why has delayed the formulation of a US-India trade deal in 2025? Differences over US demands on agriculture, dairy, medical devices and e-commerce rules, and India’s concerns about tariff changes and data regulations are learned to have prevented both sides from arriving at a mutually agreeable deal. How does a trade deal help two economies? A trade pact helps two economies by lowering tariffs, improving market access for businesses, boosting cross-border investment flows and strengthening supply chains.