New Delhi:India is expediting its trade talks with the United States with an aim to conclude its negotiations by November end, even as New Delhi’s purchases of Russian oil remain a sticking point. Indicating New Delhi’s readiness to step up energy imports from America, commerce secretary Rajesh Agrawal is expected to join the Indian delegation in the US on Thursday for trade talks.
The New Delhi’s decision comes after the US Ambassador-designate, who was recently in India, held meetings with all key stakeholders and described the discussions as productive. According to the sources, talks between India and the US on trade-related matters are progressing steadily.
“The engagement between the two sides is speeding up as India is exploring the possibility of scaling up imports of natural gas and renewable energy technologies from the US as part of its broader strategy to diversify energy sources. The move aligns with India’s goals of enhancing energy security and promoting cleaner alternatives,” the source said.
As far as India’s energy security is concerned, New Delhi wants the continuous availability of energy in sufficient quantities and at an affordable price, with limited vulnerability to disruptions. In the past 7-8 years, energy purchases from the US, largely crude oil, have come down from $25 billion to around $12-13 billion. “So, there is a headroom of around $12-15 billion, which we can purchase without worrying about the configuration of refineries,” Agrawal told reporters here.
“And there is a bilateral commitment, and in discussions we are in, we have indicated very positively that India as a country would like to diversify its portfolio as far as energy imports are concerned. That’s the best strategy for a big buyer like India. As a country, we will be very happy to buy more energy from the US, subject to availability at the right price,” Agrawal said.
The Indian negotiating team is already in Washington for trade talks, and Agrawal may join them on Monday. “Our negotiating team is already in the US, and (they are) trying to see if we can have a win-win solution between the two sides, which can address some of these tariff issues,” the secretary said.
These remarks are important as purchasing more crude oil from the US will address Washington’s concerns on the merchandise trade deficit with India, which stood at $45.8 billion in 2024-25. When asked if this is a formal round of negotiations, the secretary said the US is in shutdown, and because of that, their manpower strength is down as they are not working.
“So, that’s not the right time to have a full-fledged negotiation. Having said that, there is a movement on both sides where we are trying to see if there is a pathway to address the current trade challenges. Both sides are discussing to see if there are any answers,” Agrawal said.