India-US trade talks are progressing rapidly, with Commerce Minister Piyush Goyal describing negotiations as moving in a “good direction”.
India’s merchandise exports rose 17.8% year-on-year to $215.91 billion during April-August, while exports to the US reached $42.79 billion.
New US legislation gives President Donald Trump powers to impose tariffs of up to 100% on goods from major Russian oil buyers, putting India’s energy purchases under scrutiny.
Trade Deal or Tariff Trouble? India-US Talks Move Fast as Russia Oil Tensions Rise
India and the US are accelerating negotiations for a bilateral trade agreement as Washington weighs higher tariffs on countries buying Russian oil, creating a fresh challenge for New Delhi
Summary
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India and the United States are making rapid progress in negotiations for a bilateral trade agreement, Commerce and Industry Minister Piyush Goyal said on September 22, as New Delhi seeks to expand its export markets amid growing pressure from Washington over India’s purchases of Russian crude oil.
Goyal said the trade discussions were moving “fast” and in a “good direction”, but did not disclose details of the issues that remain unresolved.
India and the US are currently negotiating a Bilateral Trade Agreement aimed at strengthening trade ties and improving market access between the two countries.
The comments came as India reported continued momentum in merchandise exports.
Goods exports increased by more than 15% between April and the first 14 days of September compared with the same period a year earlier, Goyal said. Government data showed merchandise exports had already risen 17.8% year-on-year to $215.91 billion during April-August.
The US remains India’s largest export destination. Indian merchandise exports to the American market increased to $42.79 billion during April-August, from $40.39 billion in the corresponding period last year, underscoring the importance of the US market to India’s external trade.
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The trade negotiations, however, are taking place against a more complicated geopolitical backdrop.
US President Donald Trump on September 18 signed legislation granting him powers to impose tariffs of up to 100% on goods from countries that are among the largest purchasers of Russian oil or gas.
India and China are among the major buyers of Russian crude. The legislation does not automatically impose a 100% tariff on Indian imports, but gives the US President broad authority to levy such duties under specified conditions.
New Delhi has warned that such measures could affect bilateral relations while maintaining that it remains committed to securing affordable and reliable energy supplies from multiple sources.
Goyal said on September 21 that the government was examining the details and implications of the new US sanctions legislation. He added that India would discuss the matter with Washington “at an appropriate time”.
The developments leave trade negotiations between the two countries proceeding alongside a potentially contentious issue over energy security and India’s continued purchases of Russian crude.
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