New York : India and the United States are reportedly close to finalising a long-awaited trade agreement that could reduce US tariffs on Indian goods to around 15–16% from the current 50%. The proposed agreement mainly focusses on the energy and agriculture sectors. One of the key elements under discussion is India’s gradual reduction of crude oil imports from Russia, a move that aligns with Washington’s efforts to limit global dependence on Russian energy supplies.
With both sides working to conclude the deal before the upcoming ASEAN Summit later this month, where a formal announcement could be made. The talks reportedly involve steps to strengthen cooperation in energy and agriculture — two areas that have been central to past trade negotiations between the two nations.
The report added that the deal may include a system for regular tariff and market access reviews, aimed at ensuring that both sides maintain balanced trade terms over time. In return, the US is expected to lower its import tariffs on Indian goods significantly, bringing them down to 15–16% from the existing levels of up to 50%.
The progress comes after a phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi earlier this week. Trump told reporters that the discussion largely centred on trade and energy cooperation. Energy was also part of our discussion, and Prime Minister Modi assured me that India would limit its oil purchases from Russia, Trump said.
Modi confirmed the conversation through a post on X (formerly Twitter), thanking President Trump for his Diwali greetings. “Thank you, President Trump, for your phone call and warm Diwali greetings. On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” Modi wrote.
While Modi did not share details about the trade discussion, his message indicated that both sides are working to strengthen ties ahead of a possible agreement. If concluded, the deal would mark the most significant progress in India-US trade relations since talks stalled in 2020 over tariff disagreements. The United States remains one of India’s largest trading partners, with bilateral trade crossing $200 billion in recent years.
However, the reported condition regarding reduced Russian oil imports may test India’s balancing act between maintaining energy security and meeting geopolitical expectations. According to the report, both countries are expected to finalise the agreement ahead of the ASEAN Summit later this month. The event could serve as a platform for the leaders to announce the pact, signalling a renewed phase of cooperation between New Delhi and Washington.
Read Also : Tamil Nadu Braces for Brewing Bay of Bengal Storm as Monsoon Fury Triggers Widespread Shutdowns
-
-
-
-
