New Delhi: India and the United States are reportedly on the verge of finalising a long-awaited trade deal that promises to reshape their economic ties. As per a Mint report, the agreement could slash US tariffs on Indian goods from the current 50 per cent to around 15–16 per cent, offering a major boost to Indian exporters.
The proposed pact primarily focuses on the energy and agriculture sectors, with discussions also centred on India’s gradual reduction of crude oil imports from Russia — a move that aligns with Washington’s goal of curbing global reliance on Russian energy.
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Earlier, Chief Economic Advisor (CEA) V. Anantha Nageswaran had expressed confidence that the ongoing tariff dispute between India and the US would be resolved within the next two months. He noted that this resolution could pave the way for the withdrawal of the penal levies imposed by the White House. The US had earlier slapped a punitive 25 per cent duty on Indian exports in response to India’s continued oil purchases from Russia — a move that came in addition to the 25 per cent reciprocal tariffs announced by India in April.
Currently, Russia accounts for about 34 per cent of India’s crude oil imports, while the United States meets nearly 10 per cent of India’s oil and gas needs by value. As part of the upcoming trade deal, India may consider opening its markets to non-genetically modified (non-GM) American corn and soymeal. Additionally, New Delhi is reportedly pushing for a clause in the agreement that would allow regular reviews of tariffs and market access to ensure a balanced and flexible trade framework, Mint reported.
According to the report, the long-awaited trade agreement between India and the US is expected to be finalised during the ASEAN Summit later this month, when Prime Minister Narendra Modi and former US President Donald Trump are likely to meet.
As part of the deal, India is reportedly considering increasing the import quota for non-GM maize from the US while maintaining the existing 15% duty. The current limit stands at 0.5 million tonnes per year. New Delhi may also permit additional imports of American corn to cater to the rising demand from the poultry feed, dairy, and ethanol industries.
The progress comes after a phone conversation between US President Donald Trump and Prime Minister Narendra Modi earlier this week. Trump told reporters that the discussion mainly focused on trade and energy cooperation.
“Energy was also part of our discussion, and Prime Minister Modi assured me that India would limit its oil purchases from Russia,” Trump said.
Prime Minister Narendra Modi confirmed the phone conversation in a post on X (formerly Twitter), where he thanked President Trump for his Diwali greetings. “Thank you, President Trump, for your phone call and warm Diwali greetings. On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” Modi wrote.
Although he did not mention specifics about the trade talks, his message suggested that both nations are moving toward deeper cooperation ahead of the expected agreement.
If finalised, the deal would represent the biggest step forward in India–US trade relations since talks broke down in 2020 due to tariff disputes. The United States continues to be one of India’s key trading partners, with bilateral trade surpassing 200 billion dollars in recent years.
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