India and the U.S. are set to hold trade talks this week, with New Delhi pledging to import American energy and gas, according to a Reuters report. It says that the aim is to address Washington’s concerns over its Russian oil purchases, an official said.
Talks between India and the U.S. were suspended briefly in August after the Trump administration announced tariff hikes of up to 50% on Indian goods, accusing New Delhi of financing Russia’s war in Ukraine by continuing to buy Moscow’s oil despite Western sanctions.
However, discussions resumed in September after U.S. President Donald Trump struck a conciliatory tone in public remarks and spoke to PM Modi on the phone, raising hopes for a breakthrough.
Purchasing Energy
The official, speaking on condition of anonymity due to the sensitivity of the issue, said India was looking to increase purchases of energy and gas from the U.S.
The move follows U.S. ambassador-designate Sergio Gor’s meetings over the weekend with PM Modi and later with Commerce Secretary Rajesh Agrawal on strengthening bilateral trade and investment.
“During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States,” Gor said on ‘X’ on Sunday.
Indian officials held “constructive” talks with U.S. counterparts in Washington last month, the US government said, in a Reuters report. It added that both sides agreed to push for an early conclusion of a mutually beneficial trade deal.
India-U.S. Trade
The U.S. has imposed tariffs that are hurting exports of textiles, leather goods, gems & jewellery, and food products in India. New Delhi is now looking to diversify markets and offer incentives to exporters.
India’s exports to the United States fell to $6.86 billion in August from $8.01 billion in July, trade ministry data showed, with exporters reporting further declines in September.
Negotiations began in February 2025, targeting a deal to double bilateral trade to $500 billion by 2030.
The two sides have held five rounds of trade talks, with the sixth – postponed in August – now expected to lead to the first phase of the deal next month, as agreed by Trump and Modi.
When asked about the Trump administration’s calls for greater Indian investment in the U.S., the source said New Delhi was not opposed and viewed overseas investments by Indian firms positively, similar to China’s approach.
(with inputs from Reuters)
