India is weighing the option of importing corn from the United States to boost ethanol production as part of ongoing trade negotiations with Washington. The discussions are intended to culminate in a bilateral trade agreement (BTA) by the fall, focusing on mutual benefits and expanded economic cooperation.
New Delhi is simultaneously pressing the US to lift the additional 25% tariffs imposed on Indian imports of Russian crude oil, which the US has argued indirectly supports the conflict in Ukraine. Officials indicate that fresh proposals, including discussions on US corn purchases for ethanol, have already been tabled, signalling progress in the talks.
The US has been advocating for increased shipments of American soybeans and corn to India. However, Indian authorities have expressed concern over genetically modified (GM) crops entering the domestic food supply. Protecting local farmers and ensuring that GM products do not infiltrate the market remain top priorities for India. For context, India exported goods worth $6.86 billion to the US in August, while imports from the US reached $3.6 billion.
The trade discussions are reportedly on track, with both nations aiming to meet the fall timeline, although the next round of meetings is yet to have a confirmed date or venue. During the recent US visit, Commerce Minister Piyush Goyal met with United States Trade Representative Jamieson Greer and US ambassador-designate Sergio Gor, marking the first face-to-face engagement since the 25% punitive tariffs were imposed on August 27. Combined with earlier reciprocal tariffs, the total now stands at 50%. The Indian delegation, led by Rajesh Agarwal, also met US counterparts to promote trade and investment opportunities.
Both sides exchanged views on the “possible contours” of a trade deal, agreeing to continue engagement toward a mutually beneficial agreement. Meanwhile, US officials have highlighted India’s ongoing purchase of Russian crude as a sensitive issue. India maintains that buying discounted Russian oil is critical for energy security and notes that prior US administrations had encouraged such purchases to stabilize global crude prices.
Ship tracking data indicates that India’s crude oil imports from Russia are expected to rise by approximately 200,000 barrels per day in September compared to August. As of September 23, India had imported 1.63 million barrels from Russia, slightly down from 1.71 million barrels per day in August. Both nations remain committed to concluding the trade negotiations in a phased and comprehensive manner, aiming to resolve key energy and agricultural issues efficiently.
