India and the United States are set to resume high-level trade talks this week, with New Delhi indicating its willingness to increase imports of American energy and liquefied natural gas (LNG) in a bid to address Washington’s concerns over India’s continued purchases of Russian oil. The negotiations, which began in February 2025 with an ambition to double bilateral trade to $500 billion by 2030, were briefly suspended in August after the Trump administration slapped tariff hikes of up to 50% on Indian goods, accusing India of indirectly financing Russia’s war in Ukraine by buying discounted oil from Moscow despite Western sanctions.
Talks were revived in September after U.S. President Donald Trump took a more conciliatory stance and spoke directly with Prime Minister Narendra Modi, raising hopes for a breakthrough. The sixth round of talks, postponed in August, is now expected to deliver the first phase of a trade deal next month, as agreed by Trump and Modi. An official, speaking on condition of anonymity, confirmed that India is ready to boost purchases of U.S. energy and open its renewable and nuclear energy sectors to greater participation from private players, including American firms. The official added that India is also open to importing more LNG from the United States as part of efforts to strengthen economic ties.
The move follows meetings by U.S. ambassador-designate Sergio Gor with Prime Minister Modi and Commerce Secretary Rajesh Agrawal, during which both sides discussed expanding trade and investment. Gor said on social media platform X that he spoke with Agrawal about strengthening economic ties and facilitating increased investment in the United States. Indian officials described recent talks in Washington as constructive, noting that both sides agreed to work toward an early conclusion of a mutually beneficial trade agreement.
The tariff hikes have hit key Indian export sectors, including textiles, leather goods, gems and jewellery, and food products, prompting the government to diversify markets and offer incentives to exporters. India’s exports to the U.S. fell to $6.86 billion in August from $8.01 billion in July, with further declines reported in September. In response to U.S. calls for greater Indian investment in America, the official said New Delhi was not opposed and viewed overseas investments by Indian firms positively, comparing the approach to that of China. With five rounds of talks already completed and political momentum restored, the upcoming discussions are expected to play a crucial role in finalising the first phase of the long-awaited trade deal.
