Commerce Minister on Tuesday departed for a seven-day visit to the United States, where he is expected to meet his US counterpart as both sides work towards finalising an interim trade deal. However, India’s continued purchases of Russian oil could pose a fresh hurdle in the negotiations.
This comes after a new US law gave President the power to impose penalties of up to 100 per cent on countries buying Russian oil and gas. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was cleared last month, weeks after the South Carolina Senator died.
On 28 July, after reaching an agreement on the new law, senators, in a joint statement, said, “We are proud to announce an agreement on legislation to stop purchasers of from fueling Putin’s war machine and to continue restricting the Iranian regime’s ability to support terrorism and build its nuclear program.”
India-US yet to finalise trade agreement
According to a Bloomberg report, Goyal’s visit comes at a time when and the US have yet to sign an interim trade agreement pursued earlier this year, with the two sides still negotiating rates applicable to Indian goods entering the US market. Despite this, Washington accounts for nearly a fifth of New Delhi’s exports, making it New Delhi’s largest market.
According to a Commerce Ministry statement, “Goyal will also engage bilaterally with his counterpart from the United States as part of ongoing efforts to advance a balanced and mutually beneficial India-US Bilateral Trade Agreement (BTA) and finalise an interim deal in line with the Joint Statement of 7 February 2026.”
Days before his US trip, Goyal said the trade pact between New Delhi and Washington was “done and dusted”, but would be implemented once the US provides India with a level playing field against its competitors in the American market, PTI reported.
Earlier in February, the two sides agreed on the framework for the first phase of their BTA. However, subsequent shifts in US tariff policies have prompted both sides to continue negotiations on the deal.
At present, goods from New Delhi attract an additional 10 per cent duty, which was imposed under a Section 301 probe after the US Trade Representative (USTR) cited concerns over ‘forced labour’.
The last meeting between India’s Commerce Minister and USTR Jamieson Greer was held in June, following which a Commerce Ministry statement said, “The two leaders conducted a comprehensive review of core BTA elements, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors…Discussions focused on pathways to conclude an interim agreement as an important milestone toward a comprehensive BTA.”
India-US bilateral trade
Despite the ongoing tensions between the two sides, India’s exports to the US jumped 21.83% to $8.4 billion, while imports from the US increased 65.78% to $5.97 billion. Between April and August 2026-27, New Delhi’s merchandise exports to Washington rose 6.17% to $42.8 billion. During the same period, imports grew 29.6% to $28 billion.
In 2025-26, Washington was New Delhi’s largest trading partner, with bilateral trade valued at $132.2 billion, comprising exports worth $86.51 billion and imports of $45.62 billion.
As Washington continues to scrutinise India’s purchase of Russian crude, reports suggest that India’s imports have fallen in recent months.
India’s Russian crude imports drop
According to a PTI report, in September, New Delhi’s imports of Moscow’s declined to around 1.75 million barrels per day (bpd), the lowest level since April, as Indian refiners seek to diversify their purchases amid ongoing geopolitical crises. The decline comes even as the country’s overall crude intake climbs sharply, driven by stronger refinery runs.
India’s overall averaged around 5.3 million barrels per day in September, an increase of approximately 600,000 bpd from August and 700,000 bpd compared with the same period a year earlier, according to global commodities data and analytics firm Kpler.
While India has previously warned that such a measure could impact bilateral ties between Washington and New Delhi and disrupt global energy markets, External Affairs Minister S Jaishankar has also raised similar concerns with US Secretary of State Marco Rubio. It remains to be seen whether Russian crude imports will impact the interim agreement.
(with agency inputs)