India, US Remain Committed to Bilateral Trade Deal, Commerce Secretary Says
New Delhi — India and the United States remain committed to finalizing a proposed bilateral trade agreement and are maintaining regular contact despite new tariff-related uncertainties, Commerce Secretary Rajesh Agarwal said Thursday.
“Our sense is both sides are completely committed to move ahead and finalise the framework that was agreed in February, and the two countries are in regular contact on the issue,” Agarwal told journalists.
“We are engaged with the US side on the trade deal and our contacts are regular,” he added.
The two countries made progress on the first phase of the bilateral trade agreement earlier this year, but subsequent tariff developments in the United States have raised questions about the path forward.
Indian exports currently face an additional 10% duty under a Section 301 investigation related to alleged forced labor concerns.
The U.S. Senate has also passed legislation that would give President Donald Trump authority to impose tariffs of up to 100% on goods from major purchasers of Russian oil, including India. Western governments have argued that continued purchases of Russian crude help finance Moscow’s war in Ukraine.
India’s imports of Russian crude have increased and accounted for more than half of the country’s total oil imports in July.
Asked about the U.S. legislation, Agarwal said it was part of an ongoing American legislative process.
“It is a legislative process of the US, which is underway and is their internal process,” he said, declining to comment further.
India has also expanded the number of countries from which it imports crude oil as it seeks to strengthen energy security amid geopolitical instability. The number of crude suppliers has risen to 41 from 27 following disruptions linked to the Iran conflict and the closure of the Strait of Hormuz, a key route for global energy shipments.
The country has similarly broadened its sources of liquefied natural gas, increasing the number of supplier nations to 15 from six. The United States now accounts for a significant share of India’s LNG imports.
India imports more than 85% of the crude oil it consumes, making diversified supply sources increasingly important as global energy markets face heightened volatility and the risk of disruptions.
