India and the United States are reportedly in the final stages of sealing a long-awaited trade agreement that could significantly ease US tariffs on Indian goods, bringing them down to around 15–16% from the current 50%.
The proposed deal, expected to be announced at the upcoming ASEAN Summit, mainly focuses on cooperation in energy and agriculture sectors.
A key element of the talks includes India’s gradual reduction of crude oil imports from Russia, aligning with Washington’s efforts to limit global dependence on Russian energy.
In exchange, India may increase imports of certain US agricultural products like non-genetically modified corn and soymeal, addressing longstanding American concerns about market access.US President Donald Trump recently spoke with Prime Minister Narendra Modi, with trade and energy cooperation topping their discussions. Trump confirmed Modi’s assurance that India would curb its Russian oil purchases.
The agreement, if finalized, could mark the most significant progress in India-US trade relations since talks stalled in 2020, and would boost Indian exports in textiles, engineering goods, pharmaceuticals, and more.