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100% U.S. tariff threat: Can India’s new trade deals reduce its dependence on America?

admin — Mon, 21 Sep 2026 14:18:00 +0000

By Areena Arora and Gandla Sneha

Published September 21, 2026

Prime Minister Narendra Modi with U.S. President Donald Trump in New Delhi on Feb. 25, 2020. (PTI Photo)

As the Trump administration has repeatedly changed tariffs on Indian goods, New Delhi has been signing trade agreements at a rapid pace. But can these new markets meaningfully reduce India’s dependence on the U.S. as it’s faced with 100% tariffs?

How U.S. tariffs on Indian goods have changed since 2025

The U.S. House of Representatives has passed legislation giving U.S. President Donald Trump broad
powers to impose sanctions on Russia and tariffs of up to 100% on countries that buy Russian oil and
gas, a measure that could once again put Indian exports in the firing line.

The development comes after more than a year of upheaval in India-U.S. trade. Since Trump returned
to the White House, Indian exporters have faced repeated changes in tariff rates, the products
covered and the laws used to impose them. The uncertainty matters because the U.S. has only become
more important to India’s exporters. This bill comes amidst New Delhi and Washington negotiating a
preliminary trade deal.

The Trump administration had announced an additional 25% tariff, on top of an existing 25% tariff on
India in July 2025, for the purchase of Russian oil. The share of Russian crude oil in Indian oil
imports fell to its lowest level in two years in December 2025, but energy markets have been under
additional pressure owing to the U.S.-Iran conflict and New Delhi’s import of Russian oil hit an
11-month high in April this year. However, the U.S. Treasury paused sanctions for oil shipments that
were in transit before March 11, as supplies were hit following the start of the conflict in West
Asia on February 28.

Russia accounted for more than 51% of India’s oil imports in July, an all-time high, up from just a
little less than 50% in the previous month, the latest official data shows. An analysis of Commerce
and Industry Ministry data shows India imported 110.4 lakh tonnes of Russia oil in July, the latest
month for which data is available.

U.S. is India’s most important trading partner, as evident in its imports from India. In 2025, the
U.S. bought about $92 billion worth of Indian merchandise, almost four times the $24 billion it
bought in 2010. Its share of India’s merchandise exports nearly doubled over the period.

Even as the Trump administration has repeatedly turned to tariffs, New Delhi has been rapidly
expanding its network of trade agreements, opening up markets across Europe, West Asia and
elsewhere. But can these new markets meaningfully reduce India’s dependence on the U.S.?

How the U.S. tariff regime has been changing

India is not alone in facing U.S. tariffs. On April 2, 2025, the Trump administration announced a
10% additional tariff on imports from almost all trading partners, along with higher
country-specific rates for dozens of economies. India was assigned a 26% rate, while other major
trading partners including the European Union, Japan and South Korea were also placed above the 10%
baseline. The higher country-specific tariffs were suspended days later for most countries, leaving
the 10% baseline in place. China was treated separately and faced substantially higher rates during
the ensuing tariff dispute.

U.S. Section 301 tariffs, as of July 2026

Tariff rates vary by country. For some, the rate is an additional duty on top of existing tariffs, while for others it is a total rate that includes existing duties.

10% + existing tariff(additional duty)
12.5% + existing tariff(additional duty)
10% total(includes existing duties)
12.5% total(includes existing duties)
Not covered by this action

Loading tariff map…

In July 2025, the U.S. announced a 25% rate for India, which it then hiked to 50% as a penalty for
importing Russian oil. The additional Russian-oil tariff was removed in February 2026, when India
and the U.S. announced a framework for an interim trade agreement.

The tariff regime changed again in 2026. After the U.S. Supreme Court struck down the use of
emergency economic powers for the reciprocal tariffs, the administration turned to other provisions
of U.S. trade law. A temporary 10% import surcharge under Section 122 took effect on February 24 and
remained in force until July 24.

In July, the U.S. Trade Representative imposed new Section 301 tariffs on 60 economies following an
investigation into forced-labour import restrictions. The rates varied by country, from 10% for
India, the UK and several others to 12.5% for many of the economies covered.

Since July, around 55% of India’s exports to the U.S. have faced this additional 10% Section 301
duty. The remaining 45% are outside its scope, including generic pharmaceuticals, smartphones and
products already subject to separate Section 232 tariffs such as steel, aluminium and auto parts.

These repeated changes have made it difficult for exporters to plan around fluctuations in the U.S.
market, said Biswajit Dhar, an economist and former professor at Jawaharlal Nehru University.

“With regular changes in U.S. tariff rates, Indian exporters face serious uncertainties over their
expected earnings in the world’s largest economy,” he said.

Indian Liquified Petroleum Gas carrier Shivalik as it arrives at the Mundra Port in Gujarat, India. (REUTERS/Amith Dave)

Meanwhile, India’s dependence on the U.S. has grown

Over the years, the U.S. has accounted for a growing share of India’s exports. What Indian exporters
sell to American buyers has also changed.

Two decades ago, consumer goods made up more than half of India’s exports to the U.S., while capital
goods accounted for just 11.4%. By 2025, the share of consumer goods had fallen to 40.9%, while
capital goods had risen to 28.6%.

The composition within those broad categories has changed too. In 2005, precious stones accounted
for 24.7% of India’s exports to the U.S. and textiles and apparel for 21.3%. By 2025, their shares
had fallen to 7.3% and 8.3%, respectively.

Source: International Trade Center trade map. Shares are each product group’s value divided by total merchandise exports to the U.S. that year.

Electrical machinery moved in the opposite direction. It accounted for just 2.6% of India’s exports
to the U.S. in 2005, but by 2025 had become the largest category, making up 28% of the export
basket. Pharmaceuticals also increased from 1.6% to 10.4% over the period.

Some of these industries are also highly dependent on the U.S. as a destination. In 2025, 48.1% of
all electrical machinery exported by India went to the U.S. The corresponding share was 55% for
carpets and 37.3% for pharmaceuticals. For some smaller categories, the dependence was even greater.
The U.S. accounted for 77.3% of prepared meat and fish exports in 2025.

This makes changes in U.S. market access particularly important for Indian exporters. For several
industries, the U.S. accounts for a substantial share of their total overseas sales.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw during the inauguration of a manufacturing unit for tempered glass used in mobile phones, in Noida, Uttar Pradesh, on Aug. 30, 2025. (PTI Photo)

India’s attempt at diversifying its trade partnerships

India has also accelerated its push for new trade agreements. Since 2021, India has concluded or
announced nine trade agreements covering 38 countries.

The Comprehensive Economic Partnership Agreement with the UAE came into force in 2022, followed by
the Economic Cooperation and Trade Agreement with Australia later that year. India signed an
agreement with the four-country European Free Trade Association in 2024. Deals with the UK and Oman
followed, while India has also concluded negotiations with the European Union and signed an
agreement with New Zealand.

These agreements offer Indian exporters significant tariff concessions. Under the agreement with the
UK, for instance, nearly 99% of Indian exports will receive zero-duty access. Oman has offered
duty-free access covering more than 99% of Indian exports by value. New Zealand has agreed to
eliminate tariffs across all tariff lines once the agreement comes into force.

Source: Trade Intelligence Analytics TIA Portal, Department of Commerce

From January 2026, Indian goods also received zero-duty access across all Australian tariff lines.

The agreement concluded with the EU is potentially the most significant because the size of the
European market comes closest to that of the U.S. The concessions negotiated cover more than 99% of
Indian exports by trade value, although the agreement is not yet in force.

Even as FTAs have expanded India’s access, the scale of these markets matters. India’s bilateral
trade with the UAE rose from about $43 billion in FY2021 to around $100 billion in FY2025. Trade
with Australia increased from roughly $12 billion to $24 billion over the same period.

This growth cannot be attributed entirely to trade agreements. Commodity prices, domestic demand,
exchange rates and wider economic conditions also affect bilateral trade. An FTA also does not
automatically redirect exports from one country to another. Exporters still have to find new buyers
and distribution networks. Products may also need to meet different regulatory and technical
standards. In some markets, non-tariff barriers may matter more than the tariff itself.

Trade with India’s FTA partners has grown

Pre-FTA reference level (FY2021)
FY2025 trade

Note: The chart compares trade before and after the FTA period. It does not imply
that the FTA caused the increase.

Source: Ministry of Commerce and Industry database

The EU illustrates both the opportunity and the limitation. It is the only market large enough to
approach the U.S. as an export destination for India, even as the U.S. remains the largest single
destination among the markets considered. India’s exports to the European bloc increased from about
$49.5 billion in 2017 to $78.5 billion in 2025. The EU accounted for about 17.6% of India’s
merchandise exports in 2025. Together, the U.S. and EU accounted for roughly 38% of India’s
merchandise exports that year.

The recently concluded trade agreement could substantially improve tariff access for Indian
products. But greater access does not guarantee that industries heavily dependent on American demand
will begin selling comparable quantities in Europe in the short term.

The same problem is more pronounced for smaller FTA partners. The UK is considerably smaller.
India’s exports to the country increased from about $9 billion in 2017 to $13.8 billion in 2025.
Australia also became more important, with exports rising from about $3.9 billion to $7.7 billion.
But it still accounted for only about 1.7% of India’s merchandise exports in 2025.

The UAE, UK and Australia can provide additional demand. But individually they remain far smaller
destinations for Indian merchandise than the U.S.

Diversifying away from the U.S. would be difficult in the short term, Dhar said. The U.S. is the
largest market for some of India’s most export-oriented industries, particularly mobile phones and
pharmaceuticals. Entering new markets would also take time and investment, especially for
pharmaceutical companies that need to establish their products and build demand, he said.

For sectors with high exposure to the U.S. market, it remains to be seen whether greater market
access through FTAs translates into more exports to these destinations.

Dhar pointed to China’s experience. Before Donald Trump began targeting China during his first term,
a much larger share of its exports went to the U.S.

“China saw the writing on the wall and began developing new markets for its exports,” Dhar said. By
the time Trump returned to the White House, that share had fallen substantially. “If India can
garner stronger political will, it could reduce its export dependence on the U.S. in a shorter time
span than China did.”

Data do not yet show India moving away from the American market. The U.S. share of Indian exports
has risen steadily, reaching more than one-fifth in 2025.

And the possibility of another major tariff shock has now moved closer.

The U.S. House of Representatives on Wednesday passed legislation giving Trump broad powers to
impose sanctions on Russia and tariffs of up to 100% on countries that buy Russian oil and gas.
India, one of the largest buyers of Russian crude since the invasion of Ukraine, could be affected
by the measure.

The legislation will now go to Trump to be signed into law. It does not mean a 100% tariff on Indian
goods automatically takes effect. Rather, it gives the President authority to impose tariffs of up
to that level on countries purchasing Russian energy.

For Indian exporters, the development adds another source of uncertainty around the market that has
become their most important overseas destination. India’s new trade agreements provide access to a
much wider set of markets. Whether those markets can reduce that dependence will ultimately depend
on whether Indian exports actually begin shifting towards them.

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How petroleum products are boosting India’s export growth

admin — Wed, 19 Aug 2026 17:13:00 +0000

A large cargo ship at an industrial port in New Mangalore, India.
| Photo Credit: Wirestock

Data released by the Ministry of Commerce and Industry on August 13, 2026, showed India’s exports gaining momentum, despite the ongoing war in West Asia, driven in particular by the growth in export of merchandise (goods).

In July 2026, India exported $44.2 billion worth of goods, up nearly 20% compared to July 2025. Though the growth in the goods exports was encouraging, India’s merchandise trade deficit widened from nearly $28 billion in July 2025 to $32 billion in July 2026 due to higher growth in imports. Analysis showed that the growth in exports was largely driven by an increase in the export of petroleum products, whose prices have gone up since the U.S. launched its attack on Iran in the last week of February.

Published – August 20, 2026 08:00 am IST

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India’s balancing act to attract more investment from China, U.S. and boost trade

admin — Sat, 01 Aug 2026 13:38:00 +0000

The Indian government has over the last few months been walking a tightrope between maintaining its strategic objectives and encouraging more trade and investment from the two largest economies in the world — the U.S. and China

This balancing act has seen gradual and incremental relaxations in several long-held policies of the government — whether it has to do with foreign direct investment (FDI) in e-commerce, allowing FDI from companies with Chinese ownership, or taking action against the dumping of goods in India by its trade partners.

Anti-dumping rejections

Data compiled by the Centre for Digital Economy Policy (C-DEP) and shared with The Hindu shows that one arena in which this balancing act is playing out is in the manner in which the country uses its anti-dumping duties.

The usual procedure is for domestic industry to petition the Directorate General of Foreign Trade (DGTR) to initiate an investigation into whether a particular item is being dumped or sold at below-cost rates in India by its trade partners. The DGTR conducts an extensive investigation, examining the data, the impact on domestic industry, consults all relevant stakeholders, and then arrives at its conclusion.

If it finds that dumping is indeed taking place, the DGTR then makes a recommendation to the Ministry of Finance to either impose an anti-dumping duty on the import of that good or to extend an existing duty for a further period of time.

The data from C-DEP shows that the DGTR made 1,052 such recommendations to the Ministry of Finance in the approximately 30 years between 1991 and 2020. Of these, the Finance Ministry had rejected just 5, or 0.5%. The rest were accepted.

However, since 2020, this trend has changed. The data shows that, while the average annual number of recommendations has remained largely the same, the rejection rate increased to between 50-62% in each of the years 2020-21, 2021-22, and 2022-23. It subsequently fell to 20.8% in 2023-24 and further to 6.1% in 2024-25, before rising again to 41.5% in 2025-26 up to December 31, 2025.

The data also shows that cases against China made up the bulk of the rejections since 2000. That is, cases that involved goods from China — either singularly, or as part of a group of countries — made up 72% of the total rejections between 2000 and December 2025.

“This in itself is not surprising,” a senior government official told The Hindu on the condition of anonymity given the strategic sensitivity of the matter. “China has a higher share of rejections because it also has a higher share of investigations and subsequent recommendations against it.”

Changing nature of imports

This increase in rejections of anti-dumping duty recommendations also coincides with a changing composition of what India imports from China, with the focus shifting from finished products to intermediate goods that can be finished within India and exported onwards.

For example, electronic components made up 3.3% of India’s imports from China in the first quarter of 2015-16. This has grown to nearly 13% as of the first quarter of 2026-27. Several other types of goods used in manufacturing within India, such as electric machinery, chemicals, plastics, have seen their shares rise over the same period.

On the other hand, finished goods such as telecom instruments have seen their share fall, from about 18% to 11%, over the same period of time. Similarly, manufactured fertiliser saw its share fall from about 7.5% in 2015 to less than 1% in 2026. Consumer electronics have seen their share in imports from China halve over the same period.

“Most of the goods imported from China are capital goods, intermediate goods and raw materials like active pharmaceutical ingredients, auto components, electronic parts and assemblies, mobile phone parts, etc, which are used for making finished products which are also exported out of India,” the Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha in February 2026.

Pushback from the RSS

However, this approach also comes with its political sensitivities, as can be seen in the reaction of the Swadeshi Jagaran Manch, the economic wing of the Rashtriya Swayamsevak Sangh (RSS).

“There is a mindset among those who advise the government that restricting any kind of import is protectionist,” Ashwani Mahajan, National Co-Convener of the Swadeshi Jagaran Manch told The Hindu. “But in my opinion, this mindset is wrong. Why it is wrong is because anti-dumping duty is a remedy, not a protection.”

“This rejection phenomena is unfortunate,” he added. “There is a whole process and an approximately 100-200 page report is created taking inputs from all angles, including international experience of the sector [before a recommendation is made]. It is not based on the whims of the DGTR, but based on the data.”

Mr. Mahajan added that, if the Ministry of Finance was not accepting the data in these reports, then it should provide reasons for this.

Investment relaxations for China

In a bid to increase investments into India, the government has made several other changes to long-held policies pertaining to China.

In 2020, in order to prevent “opportunistic” takeovers or acquisitions of Indian companies due to the COVID-19 pandemic, the Government had amended the FDI Policy to mandate that investment from companies in countries that share a land border with India can enter the country only following government approval.

In March 2026, the Union Cabinet approved a small dilution of this by allowing investments from companies with up to 10% Chinese ownership to enter the country through the automatic route. That is, they do not need express government approval.

“This would help in leveraging and enhancing India’s competitiveness as a preferred investment and manufacturing destination,” the government had said at the time. “Increased FDI inflows would supplement domestic capital, support the objectives of Atmanirbhar Bharat, and accelerate overall economic growth.”

In a sign of a further thawing in India’s stance on Chinese investments, the government in July issued an order allowing four companies with Chinese ownership or links to bid for projects tendered by the Indian government in the power sector.

Balancing the U.S. for trade

In a bid to help Indian companies export more, the Indian government also recently diluted its strict stance on FDI by e-commerce companies.

For almost a decade, India completely banned FDI in e-commerce companies that held inventory in India. That is, FDI was allowed only in companies that acted purely as marketplaces and did not use those marketplaces to sell their own products.

Companies like Amazon have long been lobbying for a relaxation, while domestic trader bodies such as the Confederation of All India Traders (CAIT) have been pushing back against any such relaxation.

On July 23, the government diluted this rule by saying FDI would be allowed in e-commerce companies that hold inventory in India for the express purpose of exports.

The government said this move was made “in order to facilitate greater exports through easier and increased access of global markets by Indian sellers”.

The Indian government also won lower tariffs from the U.S. through the publication of a separate notification. In March 2026, the U.S. government launched an investigation into whether 60 of its trade partners, including India, were doing enough to prevent the import of goods made using forced labour.

The draft report of the investigation released in June proposed a 12.5% tariff on India. Soon after, the Indian government notified a ban on the import of goods made using forced labour. According to experts, the ban itself would be difficult to impose since it would involve countries like China and Malaysia allowing Indian government officials to visit and investigate their working conditions.

Nevertheless, the notification resulted in the U.S. imposing a final tariff of 10% on India, lower than what it had proposed.

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Trade deal with India not far-off, but there are still gaps: U.S. official

admin — Fri, 27 Mar 2026 08:55:00 +0000

Washington DC

The U.S. and India are not “far off” from finalizing an interim trade deal, but need to bridge some negotiating gaps, such as over discussions on pulses and the staging of tariff reductions, according to a U.S. official.

“We’re not that far off from finalizing the interim trade deal, but some gaps remain,” the official told The Hindu in recent days.

Officials in Washington are working out the nitty-gritty of trade agreements following the U..S Supreme Court’s February 20 ruling that the International Emergency Economic Powers Act (IEEPA), which was the basis for President Donald Trump’s ‘reciprocal tariffs’, was unlawfully applied. The administration is now working towards re-establishing the reciprocal tariffs using other legislative tools, including ‘Special’ 301 trade investigations conducted by the Office of the U.S. Trade Representative’s (USTR).

One of the gaps in India-U.S. discussions, as per the U.S. official, is around pulses, with India seeking to safeguard the market for this agricultural commodity and the U.S. wanting greater access to it. Politically, agriculture is a deeply sensitive issue for both countries, with the administration in DC and government in New Delhi not singing from the same song sheet— or, more literally, ‘fact sheet’.

Last month, the White House put out a ‘fact sheet’– including the term “certain pulses” on a list of items that, it claimed, India would cut tariffs on. This and other discrepancies with the joint statement issued by Washington and New Delhi had created a political furore in India. The White House quietly reissued the ‘fact sheet’ – a political statement, rather than a statement of fact– this time omitting the reference to pulses and correcting certain other discrepancies.

However, the U.S. side still appears to be pushing for market access on pulses. Additionally, The Hindu has learned that Washington is seeking reduced staging (i.e., the speeding up of a phased reduction in tariffs) and this is currently one of the gaps in negotiating positions and is under discussion.

Conversations The Hindu has had in recent days suggest that right now, however, trade officials in Washington are not focused on closing the gaps in trade deals but are busy conducting Special 301 investigations launched in March against tens of countries, including India, ostensibly for excess capacity in manufacturing and forced labour.

Farmers’ pulse: On India and its demand for pulses

While the U.S. did sign a trade deal since the latest set of 301s was launched, this was with Ecuador, (on March 13), a country with an economy at least 30 times smaller than India and whose bilateral trade with the U.S. is a fraction of U..S-India bilateral trade.

These probes— which are conducted annually on different countries— will enable the imposition of tariffs on top of the universal tariff rate of 10% , imposed on February 24 using Section 122 of the U.S.’s Trade Act, following the Supreme Court ruling. Section 122 tariffs, applied temporarily when there is a balance of payments issue, can be applied for no more than 150 days and cannot exceed 15% as per law.

Mr. Trump had said in February that he would increase the universal 10% rate to 15%. However, this has not happened and officials in DC appeared unsure whether it would happen at all. A question to the White House on the timing of any such hike went unanswered. The USTR also did not provide information on possible rate hike, when approached by The Hindu.

Hiking this universal tariff to 15% would also complicate Washington’s agreements with countries that had reciprocal tariffs of less than 15%. Additionally, the White House has been focused on Iran in terms of foreign policy and the Department of Homeland Security shutdown, domestically.

Meanwhile, countries are busy with another part of the trade agenda: the World Trade Organization’s 14^th ministerial conference in Cameroon March 26-29. Among the contentious topics is trade in e-commerce, where Indian and American positions are not aligned. India has for long wanted an end to the moratorium on tariffs on various forms of e-commerce (software downloads, digital music, etc.) while the U.S. would like to make this permanent.

Published – March 27, 2026 04:08 am IST

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Scott Bessent Signals Possible Easing Of 25% Tariff On India As Russian Oil Imports Drop

admin — Sat, 24 Jan 2026 12:29:00 +0000

United States Treasury Secretary Scott Bessent hinted that there may be a path for the removal of the additional 25% tariff levied on Indian goods due to the reduction of the country’s oil purchases from Russia.

Calling Donald Trump’s tariff system a “huge success” to have Wahington’s way, Bessent told a Western media outlet, “Indian purchases by their refineries of Russian oil have collapsed. So that is a huge success. The tariffs are still on, 25% tariffs for Russian oil are still on. I would imagine there is a path to take them off now.”

The US imposed the punitive tariff, on top of the 25% standard duty, on India in August last year. This made the 50% rate the highest in the world.

The Trump administration has argued that Indian buying of Russian oil has funneled money into Moscow’s coffers to fund its four-year war in Ukraine. New Delhi has consistently defended its earlier purchases, arguing that energy sourcing decisions are driven by global market conditions and the need to keep fuel affordable for local consumers.

Under the tariff pressure, India has reportedly reduced its oil imports from Russia. Shipments dropped to their lowest level in two years in December, while the share of OPEC supplies hit an 11-month hugh, as per news agency Reuters.

Trump has previously warned that tariffs could increase further unless India curtails its energy imports from Russia.

Union Petroleum Minister Hardeep Singh Puri said this week that despite adequate global supply, crude prices remain vulnerable to political flashpoints in West Asia, disruptions to shipping routes and unilateral policy actions by major economies, particularly the US. India, which imports 85% of its oil, has responded by diversifying its crude import basket, expanding strategic petroleum reserves and improving refining flexibility, he said.

ALSO READ: India ‘Geared Down and Stopped’ Russian Oil Imports, Says US Treasury Secretary Bessent

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Govt denies issuing any advisory to stop clean energy funding

admin — Sun, 07 Dec 2025 09:40:00 +0000

The New And Renewable Energy Ministry’s letter rattled solar manufacturers in the country. File (Image used for representation purpose only)
| Photo Credit: M. Periasamy

The Ministry of New and Renewable Energy on Sunday (December 7, 2025) said it had not issued any advisory to pause or halt new financing for the sector.

The clarification came after Reuters reported on Friday (December 5) that the Ministry had urged lenders to proceed slowly in financing new solar module plants because supply had exceeded demand.

Also Read | India’s clean energy rise needs climate finance expansion

The New And Renewable Energy Ministry’s letter rattled solar manufacturers in the country, with many raising concerns that the move could choke financing for the entire sector.

On Sunday (December 7), the Ministry said that it had asked the Finance Ministry to advise lenders to adopt a “calibrated and well-informed approach” when evaluating proposals for additional standalone solar photovoltaic module capacity, citing oversupply risks. It added that the advisory was not intended to stop funding for the entire clean energy sector.

“This broad-based caution, if applied without distinction, could hurt solar cell manufacturing,” said Chetan Shah, the chairman and managing director of Solex Energy.

“Restricting financing now will disrupt under-construction projects and deepen reliance on imported cells,” he said.

Several firms ramped up module production in recent years, betting on exports to the U.S. But higher American tariffs and tighter scrutiny of Indian shipments for Chinese-origin components have hit exports, raising fears of a glut at home.

India’s module capacity is projected to surge by a third to 200 gigawatts (GW) in the next few years, while cell output could quadruple to 100 GW, according to the Ministry.

The Ministry remained committed to strengthening solar manufacturing through policy support and infrastructure development, it said on Sunday (December 7).

Published – December 07, 2025 03:10 pm IST

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Trump says he discussed trade with PM Modi

admin — Tue, 21 Oct 2025 22:21:00 +0000

U.S. President Donald Trump WITH Prime Minister Narendra Modi. File.
| Photo Credit: Reuters

U.S. President Donald Trump said he spoke with Prime Minister Narendra Modi on Tuesday (October 21, 2025), with their conversation focused largely on trade.

“We talked about a lot of things, but mostly the world of trade,” Mr. Trump told reporters in the Oval Office.

Mr. Trump added that energy was also part of the discussion, saying Mr. Modi assured him that India would be limiting its oil purchases from Russia.

“He’s not going to buy much oil from Russia. He wants to see that war end as much as I do,” Mr. Trump said.

India and China are the two top buyers of Russian seaborne crude exports.

Mr. Trump has recently targeted India for its Russian oil purchases, imposing tariffs on Indian exports to the U.S. to discourage the country’s crude buying as he seeks to pressure Moscow to negotiate a peace deal in Ukraine.

Published – October 22, 2025 03:51 am IST

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India-U.S. to increase energy trade in coming years: Commerce Minister Goyal says in New York

admin — Wed, 24 Sep 2025 06:40:00 +0000

Union Minister of Commerce and Industry Piyush Goyal delivers the keynote address at an event titled ‘Energy Security in a Shifting Global Landscape: Building Resilient Energy Markets Across Borders’, in New York, USA, on September 23, 2025.
| Photo Credit: PTI

India expects to increase its energy trade with the U.S. in the coming years, Commerce and Industry Minister Piyush Goyal said on Tuesday (September 23, 2025), adding that India’s energy security would have a “high element” of U.S. involvement going ahead.

Speaking at an event organised by the U.S.-India Strategic Partnership Forum (USISPF) in New York, Mr. Goyal also said that the two countries would be working closely on nuclear power. The Commerce Minister is in the U.S. to take forward talks on a Bilateral Trade Agreement between India and the U.S.

“India is a big player in the energy trade,” Mr. Goyal said. “We are big importers of energy from across the world, including from the U.S. We expect to increase our trade with the U.S. on energy products in the years to come.”

Also read | India, U.S. to intensify efforts for a trade deal, says MEA

“And, being close friends and natural partners, our energy security goals will have a very high element of U.S. involvement, which will ensure price stability, diversified sources of energy for India, and help us unlock limitless possibilities with the U.S. on various fronts — energy and beyond,” he added.

This comes at a time when the U.S. has imposed a 25% additional tariff on Indian imports as a “penalty” for importing Russian oil. U.S. President Donald Trump has previously talked about how he wants India to instead buy American oil.

Mr. Goyal said that another area where India and the U.S. plan to work together is nuclear power.

“It is an area we have been talking about for a long time,” he remarked. “There were certain elements that needed to be set right, and I believe we are working in India to support the private efforts in nuclear power.”

Mr. Goyal also had strong words for the European Union regarding its plans to impose a Carbon Border Adjustment Mechanism (CBAM) tax on imports. The mechanism, set to come into force in 2026, will see a substantial increase in tariffs on European imports from India, among other countries.

“There is a lot of effort to address the impact of climate change through trade measures and we have to be cautious that we don’t allow trade and the fight against climate change to get conflated,” he said. “That has serious risks of actually dissuading countries rather than encouraging countries in joining the movement in addressing climate change.”

He further said that CBAM could isolate the EU and hurt their economy as it would render them uncompetitive in global trade.

“They would actually cause inflation in their own economy, they would land up causing their infrastructure and cost of living to become unviable,” Mr. Goyal added. “Their products will lose market share in exports. And at the same time, this green protectionism is like a trap in which if somebody buries his head, he may find it very difficult to come out of the sand.”

The Commerce Minister has been vocal about his resistance to CBAM for a while now, even threatening retaliatory action by India if Europe goes ahead with its plans.

Mr. Goyal also spoke about the issue of critical minerals, saying that the best way forward for all is to ensure resilient critical mineral supplies and diversify sources to ensure that “trade is not weaponised”.

Published – September 24, 2025 12:10 pm IST

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Not closed to trade talks, but deal would not be ‘practical’ with 50% tariffs in place: Official

admin — Thu, 28 Aug 2025 16:01:00 +0000

Image for representational purposes only.
| Photo Credit: Getty Images

The removal of the additional 25% tariff on India is not a prerequisite for trade negotiations to resume between India and the U.S., but a trade deal would not “be practical” if these tariffs were to remain, according to government sources.

They added that while negotiators from both sides are in contact, formal negotiations have not yet resumed and the date for the next formal round has not been decided. The government is also working on addressing the liquidity-related short-term issues that exporters have voiced concerns about.

“The formal round that was scheduled for the end of August has been postponed,” a source said. “We have not finalised the date yet because with the overhang of the additional tariff, it was not practical to have official level discussions on the entire BTA package.”

“Everything is on the table, but we understand that both (the 25% reciprocal tariff and the 25% penalty tariff) will have to be resolved together,” the official added. “We hope to get back to the table soon.”

However, he stressed that the Indian government did not see the removal of the 25% penalty tariffs as a “precondition” to resume the BTA talks.

Support for exporters

“The export bodies have asked for various types of support such as interest subvention, moratorium, and credit support, which we are considering,” the source said. “One main issue they raised was on liquidity, and the government is working on ways to address this.”

Notably, the government is also aware of the limitations of its support measures.

“Export promotion incentives cannot be very high, they can only be a few percentage points,” the official explained. “But right now, for the sectors getting hit, there’s virtually a trade embargo in place. You can’t export with 50% tariffs. The incentives cannot fix that.”

However, the government also believes that the medium-term impact of these tariffs would be mitigated through the liquidity measures it takes, the ongoing efforts to diversify India’s exports, the other Free Trade Agreements (FTAs) India has signed, the strength of domestic demand, and the Export Promotion Mission the government will launch soon, the official said.

Published – August 28, 2025 09:31 pm IST

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India, U.S. committed to boost trade to $500 billion through strong agreement in next 6-8 months: Goyal

admin — Tue, 18 Feb 2025 05:27:13 +0000

Union Minister of Commerce and Industry Piyush Goyal said India and the U.S. are committed to increasing bilateral trade to $500 billion and negotiating a “strong” trade agreement within the next 6-8 months. File
| Photo Credit: ANI

Piyush Goyal Goyal said once his U.S. counterpart takes charge, both countries will discuss the contours of the pact.

India and the U.S. are committed to increasing bilateral trade to $500 billion and negotiating a “strong” trade agreement within the next 6-8 months, Commerce and Industry Minister Piyush Goyal said on Tuesday (February 17, 2025).

During the recent visit of Prime Minister Narendra Modi to Washington, India and the U.S. announced to more than double the two-way commerce to $500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025.

Mr. Goyal said once his U.S. counterpart takes charge, both countries will discuss the contours of the pact.

“…In the next 6-8 months, by establishing a strong trade agreement, we are committed to increasing trade to $500 billion,” Mr. Goyal told reporters here on the sidelines of CII’s India-Qatar Business Forum meet.

He added businesses of both the countries are excited about the agreement.

When asked if the pact would have chapters related to goods, services and investments, he said, “My counterpart has not yet confirmed in the U.S…After the (confirmation), we will do talks and then only we can decide the way forward”.

Normally in a free trade agreement, two trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. Besides, they ease norms to promote trade in services and boost investments.

During the first term of U.S. President Donald Trump, the two countries had discussed a mini-trade deal, but it was shelved by the Joe Biden administration as they were not in favour of such pacts.

In 2023, the U.S. and India bilateral trade in goods and services stood at $190.08 billion ($123.89 billion in goods and $66.19 billion in services trade). In that year, India’s merchandise exports to the US stood at $83.77 billion, while imports were $40.12 billion, leaving a trade gap of $43.65 billion in favour of India.

The country’s services export to America was $36.33 billion in 2023, while imports were aggregated at $29.86 billion. The trade gap (difference between imports and exports) was $6.47 billion in favour of New Delhi.

During 2021-24, America was the largest trading partner of India. The U.S. is one of the few countries with which India has a trade surplus.

In 2023-24, the U.S. was the largest trading partner of India with $119.71 billion bilateral trade in goods ($77.51 billion worth of exports, $42.19 billion of imports and $35.31 billion trade surplus).

India received $67.8 billion in foreign direct investments from America during April 2000 and September 2024.

Published – February 18, 2025 10:57 am IST

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