New Delhi: India and the United States are set to hold a crucial round of trade talks this week in Washington, as New Delhi pledges to increase its imports of U.S. energy and gas. The discussions come in the wake of tensions sparked by U.S. tariff hikes of up to 50% on Indian goods, introduced in August over concerns that India’s continued Russian oil purchases indirectly finance Moscow’s military operations in Ukraine.
The talks, initially suspended in August, resumed after U.S. President Donald Trump adopted a conciliatory approach in public remarks and spoke directly with Prime Minister Narendra Modi, raising hopes for a constructive outcome. Indian officials are reportedly exploring ways to diversify energy sources and boost imports from the United States, addressing Washington’s concerns while also ensuring India’s long-term energy security.
U.S. Ambassador-designate Sergio Gor engaged with Indian officials, including Commerce Secretary Rajesh Agrawal, to discuss strengthening bilateral trade and investment ties. “During my visit to India, I met with Commerce Secretary Agrawal and discussed U.S.-India economic ties, including increased investment in the United States,” Gor stated on social media.
India’s exports to the U.S., spanning textiles, leather goods, gems and jewelry, and food products, were significantly affected by the tariff measures, dropping from $8.01 billion in July to $6.86 billion in August. This decline prompted New Delhi to explore market diversification and offer incentives to exporters to mitigate the impact.
Negotiations, which began in February 2025, aim to finalize a first-phase trade agreement next month. Both nations have committed to a long-term goal of doubling bilateral trade to $500 billion by 2030. Key priorities include promoting U.S. investment in India’s renewable and nuclear energy sectors and expanding India’s purchases of U.S. liquefied natural gas (LNG).
Indian authorities have indicated they are open to investing in the United States, following a strategy similar to China’s approach to overseas investments, signaling a willingness to enhance economic interdependence between the two countries.
The upcoming Washington talks are expected to be decisive in shaping the trajectory of India-U.S. trade relations, with both sides aiming to resolve outstanding disputes and establish a framework for a mutually beneficial economic partnership.