Amid the thaw in India-US relations, American Chief Negotiator Brendan Lynch is set to arrive in India on Monday night, and the two nations will resume trade negotiations on Tuesday, reports Free Press Journal.
According to Commerce Ministry sources, trade discussions are going on at several levels, and as the US Chief Negotiator comes to India, further course of action will be decided once the trade talks resume.
“There is a positive frame of mind on both sides while approaching trade issues,” according to a government source.
Sources further said that trade talks are already underway, and this visit is not for the sixth round of negotiations.
The sixth round of talks on the bilateral trade agreement (BTA), originally scheduled to begin on August 25 in New Delhi, was postponed. The BTA aims to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion.
According to ministry sources, they will discuss all the pending issues with the US team related to the trade deal.
“Certain issues are in the diplomatic realm where MEA is also engaged,” they informed.
Local dynamics have been constantly changing in the past months with respect to the uncertainty on US tariffs, and export changes are based on competitiveness from different countries.
Meanwhile, the government is considering support measures worth about Rs 25,000 crore for exporters under the Export Promotion Mission, announced in the Budget, for five financial years. The Commerce Ministry has sent the proposal to the expenditure finance committee (EFC) of the Finance Ministry.
According to sources, the Export Promotion Mission (EPM) scheme is set to go to the Cabinet soon for approval with a “much bigger amount” than proposed earlier, and inter-ministerial consultation has already taken place.
The scheme will be fungible, flexible, and nimble to address the concerns of exporters.
U.S. delegation to finalize $4 billion defense deal
A high-level delegation from the United States comprising of officials of the Department of Defense and representatives of Boeing is scheduled to visit India from September 16 to 19 to negotiate the sale of six additional P-8I maritime patrol aircraft, valued at approximately $4 billion. The discussions are aimed at expanding India’s maritime surveillance capabilities and strengthening defense ties between the two nations amid growing regional security concerns in the Indian Ocean.
The P-8I aircraft, a variant of Boeing’s P-8 Poseidon, are central to India’s efforts to bolster its naval presence and enhance anti-submarine warfare operations. The Indian Navy currently operates a fleet of 12 P-8Is, which have played a crucial role in long-range maritime reconnaissance, antisubmarine patrols, and intelligence collection.
The proposed acquisition would further expand this fleet, reflecting India’s continued commitment to modernizing its defense infrastructure and maintaining operational readiness across the Indian Ocean region.
Initial negotiations for the additional P-8I aircraft had faced significant delays due to disagreements over cost and terms of sale. The deal was originally valued at around $2.4 billion, but repeated negotiations, revised specifications, and the inclusion of enhanced support packages and training programs caused the estimated cost to rise to $3.6 billion.
The Trump administration’s imposition of a 50% tariff on Indian goods earlier this year further complicated the talks, prompting New Delhi to re-evaluate financial and strategic implications. Recent engagements between U.S. and Indian officials indicate a renewed focus on resolving these challenges, with both sides emphasizing the strategic importance of timely procurement and operational integration of the P-8I fleet.
The regional security environment has added urgency to the acquisition. China’s deployment of advanced nuclear and conventional submarines and Pakistan’s induction of Hangor-class submarines equipped with Babur 3 cruise missiles have increased India’s concerns over undersea threats
in the Indian Ocean. Analysts say these developments underscore the need for enhanced maritime domain awareness and anti-submarine capabilities. The P-8I aircraft, with its long-range sensors, sonobuoy deployment, and integrated mission systems, is considered critical to countering potential threats and ensuring India’s ability to monitor and respond to hostile submarine activity effectively.
Beyond immediate defense concerns, the acquisition is part of a broader strategic effort by India to achieve greater self-reliance in defense technology and modernize its overall fleet. The deal is expected to include not only the aircraft themselves but also training programs, maintenance support, and potential avenues for future technology collaboration. Expanding the P-8I fleet will allow India to coordinate more closely with allied navies, enhance maritime situational awareness, and strengthen deterrence capabilities across the Indian Ocean region.
Observers say the outcome of the upcoming negotiations could serve as a bellwether for U.S.-India defense relations, signaling both countries’ commitment to a deeper strategic partnership. The discussions are expected to address delivery schedules, operational integration, and long-term support, aligning with India’s broader objectives of securing its maritime interests while intaining stability in a region characterized by evolving military threats.