India and the United States are set to begin key trade talks this week. New Delhi has agreed to increase imports of American energy and natural gas to address Washington’s concerns about India’s ongoing purchases of discounted Russian crude oil, despite Western sanctions, according to a senior official.
The talks, briefly stalled in August due to Trump administration tariffs on Indian exports in response to India’s purchase of Russian oil to support Moscow’s Ukraine war effort, resumed in September after Trump adopted a more moderate stance and spoke with Prime Minister Modi, renewing hope for progress in cooperation.
An anonymous official confirmed that India plans to increase U.S. energy and gas imports as a diplomatic gesture, following meetings between U.S. Ambassador-designate Sergio Gor, Modi, and Commerce Secretary Rajesh Agrawal to boost trade and investment. Gor posted on X: “During my visit to India, I met with Agrawal to discuss US-India economic ties, including increased investment.”
Indian officials described last month’s Washington discussions as “constructive” and agreed to accelerate talks aimed at doubling bilateral trade to $500 billion by 2030. After five rounds, the delayed sixth round is set to release the initial deal tranche next month following Trump’s agreement with Modi.
U.S. tariffs have significantly impacted Indian exports of textiles, leather, gems, jewelry, and foodstuffs, leading to market diversification and the need for exporter subsidies. According to trade ministry data, exports to the U.S. dropped to $6.86 billion in August from $8.01 billion in July, with the decline continuing into the following month, September.
Energy cooperation stands out as a potential game-changer. India seeks deeper private-sector engagement from U.S. companies in renewables and nuclear power. “Investments in our renewable energy sectors are vital to our ties,” the official said, signaling readiness to procure more U.S. liquefied natural gas (LNG).
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Regarding Trump’s call for Indian companies to invest in the U.S., the source showed openness: “We welcome such international ventures, similar to China’s approach strategy.”
Having completed five rounds, negotiators are aiming for a historic agreement amid ongoing global tensions. Achieving this could strengthen energy security and trade stability, but Russia’s influence remains a potentially unpredictable factor.
