India Speeds Up Trade Talks with US Amid Oil Tensions

New Delhi:India is stepping up trade talks with the United States, with a goal of wrapping up talks by the end of November, even as New Delhi’s purchase of Russian oil remains a sticking point. Stating that New Delhi is ready to increase energy imports from America, Commerce Minister Rajesh Agrawal is expected to join the Indian delegation in the USA for trade talks on Thursday.

New Delhi’s decision comes after the US Ambassador-designate, who was recently in India, held meetings with all key stakeholders and described the discussions as productive. According to sources, talks between India and the US on trade-related issues are progressing steadily.

“Interaction between the two sides is accelerating as India explores the possibility of increasing imports of natural gas and renewable energy technologies from the US as part of its broader strategy to diversify energy sources. This move is in line with India’s objectives of enhancing energy security and promoting cleaner alternatives,” the source said.

When it comes to India’s energy security, New Delhi wants energy to be constantly available in sufficient quantities and at an affordable price, with limited vulnerability to outages. In the last 7-8 years, energy purchases from the USA, mostly crude oil, have decreased from 25 billion dollars to 12-13 billion dollars. “So there is headroom of about $12-15 billion that we can buy without worrying about the configuration of refineries,” Agrawal told reporters here.

“And there is a bilateral commitment and in our discussions we have stated very positively that India as a country wants to diversify its portfolio when it comes to energy imports. This is the best strategy for a large buyer like India. As a country we will be very happy to buy more energy from the US subject to availability at the right price,” Agrawal said.

India’s negotiating team is already in Washington for trade talks and Agrawal could join them on Monday. “Our negotiating team is already in the United States and they’re trying to see if we can have a win-win solution between the two parties that could resolve some of these tariff issues,” the secretary said.

These statements are important because buying more crude oil from the US will address Washington’s concerns about the current trade deficit with India, which stands at $45.8 billion in 2024-25. When asked if this was a formal round of talks, the secretary said the US was closed and therefore manpower was reduced because they were not working.

“So it is not the right time to have a full-fledged negotiation. However, there is movement on both sides where we are trying to see if there is a way to find solutions to the current trade challenges. Both sides are discussing to see if there is any response,” Agrawal said.