India and the United States continue to engage regularly on negotiations for a proposed bilateral trade agreement, with both countries maintaining their commitment to the framework reached earlier this year. Commerce Secretary Rajesh Agarwal said on August 13 that discussions between the two sides remain active despite new developments involving tariffs and trade-related measures.
Agarwal told reporters that India and the US are working toward completing the framework agreed upon in February. He emphasized that communication between officials from both countries remains frequent as they work to advance the proposed agreement.
The negotiations had gained momentum earlier this year, with both sides making progress on the first phase of the trade framework. However, subsequent developments in US trade policy have introduced additional uncertainty into the process.
Indian exports are currently facing an additional 10% duty under a US Section 301 investigation concerning allegations related to forced labor. The measure has added another issue to the broader trade discussions between New Delhi and Washington.
Another potential challenge has emerged from proposed US legislation concerning countries that purchase Russian oil. The US Senate has passed a sanctions measure that could give President Donald Trump authority to impose tariffs of as much as 100% on goods from major buyers of Russian crude, including India.
Western nations have argued that purchases of Russian oil contribute to Moscow’s ability to finance its ongoing war against Ukraine. India, however, has continued to purchase Russian crude as part of its broader strategy to maintain affordable and diversified energy supplies.
Russian oil accounted for more than half of India’s total crude imports during July, underscoring the importance of the issue to the country’s energy strategy. When asked about the proposed US sanctions, Agarwal described the measure as part of the American legislative process and declined to provide further comments.
India remains heavily dependent on overseas energy supplies, importing more than 85% of its crude oil requirements. As geopolitical tensions have disrupted international energy markets, the country has expanded the number of sources from which it purchases crude.
India now imports oil from 41 countries, compared with 27 previously. The expansion followed disruptions linked to the Iran conflict and the closure of the Strait of Hormuz, which highlighted the risks associated with concentrated energy supply routes.
The country has also widened its liquefied natural gas supply network from six countries to 15. The United States has emerged as an increasingly important LNG supplier, supporting India’s broader efforts to strengthen energy security while navigating changing global trade and geopolitical conditions.
