India and the United States are back at the negotiating table in New Delhi, seeking to repair trade relations strained by newly imposed U.S. tariffs and disputes over oil purchases from Russia.

The trigger was a dramatic escalation: starting late August, U.S. levies on certain Indian exports were raised to 50%, including a penal 25% on goods tied to India’s continuing trade with Russia. These moves rattled exporters, slowed growth in key sectors, and widened trade deficits. India’s exports to the U.S. dipped significantly in August, goods shipped dropped from about $8.01 billion in July to $6.86 billion.

The upcoming negotiations are led by Brendan Lynch on the U.S. side and Rajesh Agarwal on India’s. Both sides emphasize that this is less a fresh round and more a continuation, a “course-setting” meeting aimed at seeing whether the first phase of a bilateral trade agreement (BTA) can be salvaged. Among the toughest sticking points remain access to India’s agricultural and dairy markets—areas New Delhi is unlikely to yield on.

Officials see this talk as a possible turning point: if progress is made, a preliminary deal might be reached by fall 2025, helping to reverse export losses and stabilise what has become a fraught economic and diplomatic relationship.