US Assistant Trade Representative for South and Central Asia Brendan Lynch arrived in New Delhi on Tuesday for a one-day meeting with India’s chief trade negotiator Rajesh Agrawal, as both countries seek to revive stalled trade talks. Analysts in Washington suggest that a limited or “narrow” package could deliver an early agreement.

Siddharth Sharma, Associate for India and South Asia at consultancy McLarty Associates, said that while challenges remain, the overall direction is encouraging. “If negotiators keep the package narrow across tariff relief, agriculture access and standards, an early agreement is realistic. The direction is positive, though timing will depend on details,” he told IANS.

The optimism comes amid comments by Sergio Gor, President Donald Trump’s nominee for US Ambassador to India, who described New Delhi as a “strategic partner” during his Senate confirmation hearing. Gor revealed that the two sides are “not that far apart” on a deal, with negotiations focused on the “nitty-gritty” of remaining issues.

According to Sharma, Gor’s remarks underscore the Trump administration’s goals of fair and reciprocal trade, better market access, regulatory transparency, and deeper cooperation in emerging sectors such as artificial intelligence, semiconductors and critical minerals. He pointed to the target of $500 billion in bilateral trade by 2030 as an ambitious but achievable goal if barriers are reduced.

However, India’s purchase of Russian oil continues to complicate the talks. Gor called persuading India to reduce reliance on Moscow a “top priority” for Washington. Trump himself acknowledged that his decision to impose punitive tariffs created “a rift with India,” even as he emphasized the importance of strengthening ties.

Prime Minister Narendra Modi and Trump have both exchanged positive messages, with Modi affirming that ongoing trade talks will unlock the “limitless potential” of the India-US partnership.