Highlights:
- India to boost US energy and gas imports to balance trade relations.
- Tariff hikes up to 50 per cent by the Trump administration earlier strained bilateral ties.
- Exports to the US dropped from $8.01 billion in July to $6.86 billion in August.
- Bilateral trade goal set at $500 billion by 2030.
- India seeks US private investment in the renewable and nuclear energy sectors.
India and the United States are set to resume trade talks this week, signalling renewed diplomatic warmth after a tense few months of tariff battles and geopolitical disagreements. According to officials, New Delhi plans to increase energy and gas imports from the US, a strategic move aimed at reassuring Washington amid criticism of India’s continued Russian oil purchases.
The decision marks a new phase in the India-US economic partnership, as both nations seek common ground to advance a long-awaited trade agreement. Negotiations, which began in February 2025, were temporarily halted in August after President Donald Trump’s administration imposed tariff hikes of up to 50 per cent on Indian goods, accusing India of indirectly financing Russia’s war in Ukraine.
Following a phone call between prime minister Narendra Modi and President Trump in September, tensions eased, paving the way for the talks to resume. US ambassador-designate Sergio Gor met with Modi and Commerce Secretary Rajesh Agrawal over the weekend, discussing ways to strengthen bilateral investment and expand economic cooperation.
“During my visit to India, I met with Commerce Secretary Agrawal and discussed U.S.-India economic ties, including increased investment in the United States,” Gor posted on X (formerly Twitter), signaling optimism ahead of formal discussions.
For India, the tariffs have caused a noticeable dent in its export performance—particularly in textiles, leather goods, gems, and food products—with exports to the U.S. falling from $8.01 billion in July to $6.86 billion in August, and further declines expected in September. The setback has pushed India to diversify its export markets and offer fresh incentives to its exporters.
Despite the friction, both sides remain committed to achieving a long-term goal of doubling bilateral trade to $500 billion by 2030. Officials suggest that the sixth round of trade talks, postponed earlier, could result in the signing of the first phase of the deal as early as next month.
Beyond trade in goods, India is also eyeing greater US private investment in its renewable and nuclear energy sectors, alongside an increase in Liquefied Natural Gas (LNG) imports. “Investments coming into our renewable energy sectors are an important area of our relationship,” an Indian official said, hinting that India is open to deeper collaboration.
New Delhi’s willingness to engage more actively with Washington—both as an investor and as a buyer—marks a pragmatic shift in India’s foreign trade approach. The talks could well set the tone for a broader energy-driven strategic partnership between the world’s largest and oldest democracies.
