India&rsquo;s lead trade negotiator, Rajesh Agrawal, is back in India after a &ldquo;productive&rdquo; meeting in Washington with U.S. trade officials, and a senior U.S. official has clarified that the contentious H-1B visa policy will be handled separately from the trade deal.
<h4 dir="ltr">What Happened in Washington</h4>
Agrawal&rsquo;s visit involved consultations with the U.S. Trade Representative (USTR) team, led by Jamieson Greer. While nominally not a formal negotiating round, the meeting aimed to reset momentum and explore potential framework options for resolving outstanding issues between the two sides.
The U.S. side reportedly emphasised that the most difficult sticking point remains India&rsquo;s continuing purchase of Russian oil, which Washington views as undermining sanctions on Moscow. Any final arrangement may require India to reduce or modify its reliance on Russian oil imports to align with U.S. foreign policy interests.
At the same time, the U.S. official made a categorical distinction: &ldquo;Visa is a global policy &hellip; We are not going to mix visas and trade.&rdquo; The implication is that the new H-1B fee hike or visa restrictions will be handled under separate immigration or legal frameworks, not as trade concessions.
<h4 dir="ltr">Broader Context: Tensions &amp; Trade</h4>
Relations between the two countries have been under strain recently. The Trump administration has imposed steep tariffs on Indian goods, particularly tied to India&rsquo;s oil purchases from Russia, raising the total duty burden to 50%.
At the same time, Washington&rsquo;s decision to hike the application fee for new H-1B visas to USD 100,000 has raised concerns in New Delhi, especially because Indian professionals account for a significant share of U.S. H-1B holders.
Indian officials are pushing for the trade discussions to include mobility of skilled workers (particularly in IT services), arguing that limiting visa access directly hampers India&rsquo;s service exports.
However, some observers warn that immigration policy moves could nevertheless spill over into trade dynamics. Former U.S. commerce officials have opined that the H-1B change may complicate negotiations, even if not formally tied to trade.
<h4 dir="ltr">What Next</h4>
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India is expected to press for eased access for Indian professionals during the ongoing trade talks in Washington, moving the conversation beyond goods into services.
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Negotiators are likely to explore a combined solution: addressing tariffs, energy imports, investment norms, and non-tariff barriers in one package.
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The U.S. side, while expressing optimism, continues to signal that any deal will require India to make compromises, especially on energy sourcing and trade reciprocity.
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Meanwhile, Indian Commerce Minister Piyush Goyal remains in the U.S., holding talks with business leaders and pushing for early closure of the trade deal.
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Even with lingering disagreements, the tone from both capitals suggests a desire to regain forward momentum. U.S. officials have described recent dialogues as &ldquo;incredibly productive&rdquo; and assert that continuous positive developments are expected ahead.

Chief negotiator returns with positive outlook as a US official separates visas from trade

India-US Trade Talks Gain Momentum

Chief negotiator returns with positive outlook as a US official separates visas from trade

September 26, 2025 | 09:44 IST