Efforts to secure an India-US bilateral trade deal remain underway following several roadblocks and the imposition of 50% tariffs. Union Minister Piyush Goyal assured on Saturday that talks were progressing in a “cordial atmosphere” and stressed the need to protect Indian interests. The remarks came even as US President Donald Trump insisted New Delhi had already “de-escalated” and “more or less stopped” purchasing Russian oil.

“I believe the talks are progressing in a very cordial atmosphere and I have said many times that free trade agreements or trade talks are never based on deadlines. There is no agreement unless we fully address the interests of the nation – India’s farmers, India’s fishermen, India’s MSME sector. The talks are progressing very well. The talks are ongoing and we will definitely inform you when we reach a decision,” Goyal said.

Trade talks stumble

Ties between the two countries have come under severe strain in recent months as Trump imposed a steep 50% tariff on Indian goods — including a 25% levy for the purchase of Russian oil. India has described these duties as “unfair, unjustified and unreasonable”. Top aides had also held New Delhi responsible for ongoing ‘bloodshed’ in Ukraine — claiming that India was indirectly financing the Russian war and being a “laundromat for the Kremlin”. 

The recent phone conversations between Prime Minister Narendra Modi and US President Donald Trump have raised hopes of a positive outcome from the ongoing negotiations for the trade deal. After a brief gap, Assistant US Trade Representative for South and Central Asia Brendan Lynch held talks with Indian officials in New Delhi on September 16. In that meeting, both sides agreed to push for an early and mutually beneficial conclusion of the agreement.

The proposed pact aims to more than double the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.

The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports).

It accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country’s total merchandise trade.

India’s merchandise exports to the US declined by 11.93 per cent to USD 5.46 billion in September due to the high tariffs imposed by Washington while imports increased by 11.78 per cent to USD 3.98 billion during the month, according to the commerce ministry data.

India will not be buying oil from Russia: Trump 

US President Donald Trump reiterated that India will not be buying oil from Russia, saying that New Delhi has already “de-escalated” and “more or less stopped” its oil purchases from Moscow. India on Thursday said it is “broad-basing and diversifying” its sourcing of energy to meet market conditions, hours after US President Donald Trump claimed that Prime Minister Narendra Modi assured him that New Delhi will stop procuring Russian crude oil.

“Trump said India will not be buying oil from Russia, they have already de-escalated and they have more or less stopped. They are pulling back. They have bought about 38 per cent of the oil, and they won’t be doing it anymore,” Trump said.

(With inputs from agencies)