Stories
Why India-US Trade Deal Hit a Roadblock Again and What Lies Ahead
- •Long-running trade negotiations between India and America have slowed down once again with limited progress.
- •India's purchase of crude oil from Russia remains the biggest roadblock in the trade talks.
- •The US has taken steps toward imposing higher tariffs on countries buying oil from Russia, increasing uncertainty.
- •India aims to protect sensitive sectors like agriculture and secure better tariff terms for its exporters.
- •US Secretary of State Marco Rubio is expected to visit India this month, and Prime Minister Narendra Modi may visit the US soon.
Key Questions Answered
The main obstacle in the trade talks is India's continued purchase of crude oil from Russia, prompting the US to take steps toward imposing higher tariffs on countries buying Russian oil, alongside an incomplete US Section 301 investigation.
India aims to protect sensitive sectors like agriculture from market-opening agreements and secure better tariff terms while maintaining its energy procurement decisions for a population of over 1.4 billion. Conversely, the US wants India to reduce its oil purchases from Russia.
US Secretary of State Marco Rubio is expected to visit India this month, and Prime Minister Narendra Modi and US President Donald Trump may soon hold further talks. Additionally, Prime Minister Modi is expected to visit the US in December for the scheduled G20 leaders' meeting.
