India-US trade deal: No clarity on Russian oil – full list of American goods set for tariff relief in India | World News

New Delhi/Washington: Indian Minister of Commerce and Industry Piyush Goyal chose to remain silent on journalists’ questions about Russian oil. The moment came at the press conference on the newly announced interim trade agreement between New Delhi and Washington. Reporters pressed for clarity, but the minister backed down. He said that the matter belonged to the Ministry of External Affairs (MEA) but did not give details.

Days ago, External Affairs Minister S. Jaishankar had also avoided details. He said the negotiations were not directly handled by him and pointed out the discussions led by Goyal. He referred to the talks between Prime Minister Narendra Modi and US President Donald Trump.

The trade deal between India and the US was announced by President Donald Trump on Truth Social. Stating that the two countries have reached an interim agreement, he announced that customs duties on Indian goods will drop to 18 percent. He said that the additional tax on India’s purchase of Russian oil will be removed. He also claimed that India had agreed to large-scale purchases of American goods worth $500 billion.

Claiming that India will buy crude oil from Venezuela, the official said that New Delhi will gradually remove customs duties on goods coming from the USA.

Goyal later shared India’s official position on social media, saying that the agreement is a basic trade framework that will benefit both countries. He said markets will open and supply chains will strengthen in the future.

Under the agreement, India will reduce or eliminate tariffs on a wide range of American industrial goods and agricultural products. The list includes feed products such as dried distillers grains. It includes red sorghum, tree nuts, fresh fruits and processed fruit products used in animal nutrition. Soybean oil is also part of the list. Wine and spirits are also included. The same tariff reduction will be applied to many other agricultural products.

Government briefings say India will buy more goods from the US in the next five years. The total value could reach approximately $500 billion. The majority of these purchases will be energy products. India will also purchase aircraft and aviation parts. Precious metals are part of the plan. Technology products are also included. Coking coal will also be purchased in large quantities in the long term.

India will also address regulatory frictions. Access to medical devices is easier. Softer permits are given to information and communication technology products. Agricultural imports are seeing fewer non-tariff barriers. Import licensing procedures are moving towards simplification.

On the American side, Washington will impose an 18 percent reciprocal customs duty on Indian goods within the framework of the executive order dated April 2, 2025. This tax covers textiles and ready-made clothing. Leather and shoe exports are under the category. Plastic and rubber products are included. Biochemical products, handicrafts, home decoration products and select machinery products are also subject to the tariff limit.

The intermediate phase then leaves room for relaxation. Once the regulation is completed, the US plans to eliminate duties on many of India’s exports. Generic drugs continue to gain. Privileges are granted on diamond and jewelery shipments. Aircraft and aviation components fall into the aid category. Some aviation tariffs tied to national security rules on metals will be withdrawn.

India will also get preferential tariff quotas in the automobile and auto parts segment under safety-related trade provisions. Ongoing American investigations into drug imports could provide additional benefits for Indian generic drug manufacturers.

Both countries aim to open targeted market access in sectors with common commercial interests. The mechanism aims for durability. The measures will ensure that benefits flow primarily to the two partners. Technical standards and testing procedures will move towards harmonization. Tariff revision by one party may trigger proportionate responses by the other party. Negotiators plan to deepen market access under a future bilateral trade agreement.

Technology trading forms another pillar. Advanced computing hardware, such as GPUs used in data centers, will enable increased commercial exchange. Joint technology collaborations will also grow. Digital trade rules will move towards transparency. Both sides want discriminatory digital barriers to be removed. Implementation timelines are expected soon. The interim arrangement will evolve into a broader and more balanced bilateral agreement.

Trade analysts are examining its agricultural implications. Some fear pressure on India’s minimum support price system and public procurement model. Researchers point out the political sensitivity of staple food products. Dairy products, rice and wheat are central to rural livelihoods. Millions of people rely on these sectors for income stability.

Strategic observers are also monitoring defense and energy links. Major purchasing commitments can extend beyond fuel. Business purchases can include airplanes, helicopters, and even nuclear reactors. Trump’s $500 billion purchase promise strengthened this speculation. Defense orders can account for a significant share.