Officials described the US as a “very important trade partner” and said the status of the next round of talks, scheduled for Aug. 25 in New Delhi, will only be clear closer to the date.

India and the US are actively negotiating a Bilateral Trade Agreement aimed at doubling their trade to $500 billion by 2030. With discussions underway on market access and tariff concessions, both countries are working towards an interim deal by 2025,

A senior Indian government official blamed the collapse on poor judgment, saying top Indian advisers mishandled the process. "We lacked the diplomatic support needed after the U.S. struck better deals with Vietnam, Indonesia, Japan and the EU," the official said.