New Delhi: India and United States are set to resume trade negotiations this week. India pledges to boost energy and gas imports from the US as an effort to ease tensions over its continued purchase of Russian oil.
The long-running discussions were suspended in August briefly for a period of time after the Trump administration imposed tariff hikes of up to 50 per cent on several Indian goods. The US accused India of indirectly supporting Russia’s war in Ukraine by continuing to buy discounted oil from Russia despite Western sanctions.
India to increase energy imports from US
However, the talks resumed in September after US President Donald Trump held a phone conversation with PM Narendra Modi. According to a Reuters report, India now plans to increase imports of US energy and Liquefied Natural Gas (LNG).
This move follows the series of meetings between US ambassador-designate Sergio Gor and Indian officials, including PM Modi and Commerce Secretary Rajesh Agarwal, over the weekend. “During my visit to India, I met with Commerce Secretary Agrawal and discussed U.S.-India economic ties, including increased investment in the United States,” Gor wrote on X (formerly Twitter) on Sunday.
US-India held ‘constructive’ talks
According to India’s Commerce Ministry, officials from both sides held “constructive” discussions in Washington last month. They also agreed to fast-track a “mutually beneficial” trade agreement. The tariff hikes have hit Indian exports of textiles, leather goods gems and jewellery, and food products.
India’s exports to the US fell to 6.86 billion dollars in August from 8.01 billion dollars in July, according to the data by the trade ministry. Negotiations for the implementation of a comprehensive trade pact began in February 2025. It aimed to boost bilateral trade by 500 billion dollars by 2030. Five rounds of talks have already taken place and the sixth that was postponed till August is now expected to lead the way for the first phase of deal next month.