India and the United States are close to finalizing a major trade deal that would significantly cut American tariffs on Indian exports from approximately 50% to between 15% and 16%, according to a report by Mint citing government sources. This agreement, which focuses on energy and agriculture, may be announced at the forthcoming ASEAN Summit during a meeting between US President Donald Trump and Prime Minister Narendra Modi. The US has urged India to decrease its reliance on Russian crude oil, which currently constitutes about one-third of India’s total oil imports. In exchange, Washington is anticipated to ease tariffs on Indian goods and provide concessions related to energy trade.
Modi has reportedly assured Trump that India will gradually reduce its imports of Russian oil while diversifying its crude supply towards the US. Furthermore, India is expected to expand access for non-genetically modified American corn and soymeal while maintaining the existing 15% import duty. The proposed agreement may feature a system for regular tariff assessments and enhanced collaboration in agriculture and energy. During a Diwali event at the White House, Trump reiterated that India would lower its Russian oil imports, highlighting both countries’ commitment to ending the Russia-Ukraine conflict. Nevertheless, New Delhi has asserted that any changes to Russian energy imports will occur gradually and based on economic feasibility.
This new trade framework aims to bolster bilateral relations, improve market access, and lessen dependence on Russia amid shifting global trade dynamics.