India, US Near Landmark Trade Pact To Slash Tariffs And Shift Oil Imports

India and the United States are on the verge of sealing a significant trade agreement that would drastically lower American tariffs on Indian exports—from around 50% to 15–16%—according to a Mint report citing government sources. The deal, which centres on energy and agriculture, could be unveiled during the upcoming ASEAN Summit at a meeting between US President Donald Trump and Prime Minister Narendra Modi.

The US has pressed India to reduce its imports of Russian crude oil, which currently make up about a third of India’s total oil purchases. In return, Washington is expected to relax duties on Indian imports and offer energy-related trade concessions. Modi has reportedly assured Trump that India will gradually scale down its Russian oil intake while diversifying crude sources toward the US.

India is also likely to widen access for non-genetically modified American corn and soymeal while retaining the current 15% import duty. The proposed pact may include a mechanism for periodic tariff reviews and increased cooperation in agriculture and energy.

Trump, during a Diwali event at the White House, reaffirmed that India would reduce its Russian oil imports, emphasising that both nations shared a desire to see an end to the Russia-Ukraine conflict. However, New Delhi has maintained that any adjustment in Russian energy imports would happen gradually and in line with economic viability.

With the new trade framework, both nations aim to strengthen bilateral ties, balance market access, and reduce dependency on Russia amid global trade realignments.