India and the U.S. are close to finalizing a trade deal that could reduce U.S. tariffs on India to 15% from 50%. The deal is expected to be revealed at the upcoming Association of Southeast Asian Nations summit in Kuala Lumpur from October 26 to 28. President Donald Trump may meet directly with Narendra Modi of India.
The two countries have been in ongoing discussions for several months, aiming to ease access for Indian exports to the U.S. and open India’s agricultural products to the global market. India may allow imports of non-genetically modified U.S. non-Corn and Soymeal.
India may cut Russian oil imports as U.S. trade deal nears completion
The Mint newspaper reported that the agreement will potentially include a periodic tariff on imports and review market access conditions, allowing both nations to adapt to changing trade conditions. It noted that the tariff cut could help balance the competitiveness of Indian goods, especially in textiles, pharmaceuticals, and the manufacturing industry.
The latest revelation carries geopolitical implications, considering India may have to gradually scale back its Russian crude oil soon as part of the agreement. President Donald Trump stated that he had spoken with Modi and was assured that India would no longer purchase significant quantities of oil from Russia. India has, however, not confirmed the statement publicly yet.
The report noted that Reliance Industries of India, the country’s largest oil refiner, had already shifted its intake largely towards the Middle East. India became one of the largest buyers of Russian discounted oil since the war in Ukraine began in 2022, accounting for roughly one-third of India’s total oil imports. A shift from Russian supplies would reflect a strategic change in New Delhi’s energy sourcing and may align the country more closely with U.S. geopolitical interests.
Trade representatives from both sides, as reported by the newspaper, assured that they have made solid progress in recent talks between Washington and New Delhi. The two sides had previously disagreed on agricultural goods, tariffs, and digital trade requirements.
Trump reiterates that India will cut down on Russian oil purchases
Cryptopolitan revealed in August that Modi strongly criticized the U.S. decision to impose a 50% tariff and noted that he would not compromise on the interests of farmers, herders, and small-scale industries. He later urged Indian citizens to prioritize Swadeshi goods, hoping the country could withstand the pressure.
Subrahamanyan Jaishankar, the head of the foreign ministry for the country, had already signaled to the public that the two countries were still in talks and hinted at a possible halt to oil purchases from Russia, despite Modi’s remarks. Jaishankar, however, reiterated that a pinch towards its farmers and small-scale industries was a non-negotiable issue since it is India’s top priority.
The U.S. is identified as one of India’s largest trading partners, with bilateral trade revenue surpassing $190 billion in 2024. The report highlighted that sustained trade tensions and escalated tariffs have limited the growth this year. Meanwhile, Washington continues to pursue access to India’s agricultural and technology exports while New Delhi pushes for lower tariffs on steel, textile, and manufactured goods exports.
President Narendra Modi has thanked Trump via an X post for the call together and gave warm Diwali greetings. He emphasized that the two countries continue to show the world hope, standing against terrorism. Modi has continued to reaffirm his intentions to strengthen trade relations and also acknowledged the energy issues surrounding their ongoing trade negotiations as constructive.
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Source: https://www.cryptopolitan.com/india-and-the-u-s-near-a-trade-deal/