The U.S. has said it is “very excited” to have extended an invitation to India to join the Pax Silica initiative on supply chain security and will be soon signing with the Indian government, underlining there is “very positive momentum” in relations with New Delhi.

Highlighting the “great relationship” between U.S. President Donald Trump and Prime Minister Narendra Modi, Washington also stressed that India is probably the only other country on Earth to be able to “rival China” in terms of the sheer volume of its human talent. “We are very excited to have extended an invitation for India to join” Pax Silica, and “I’ll be travelling to India in just a couple weeks for a major signing with the Indian government,” Under Secretary of State for Economic Affairs Jacob Helberg told reporters on Friday (February 6, 2026).

The U.S. had last year in December launched ‘Pax Silica’, a strategic initiative to build a secure, prosperous, and innovation driven silicon supply chain—from critical minerals and energy inputs to advanced manufacturing, semiconductors, AI infrastructure, and logistics. The signatories are Australia, Greece, Israel, Japan, Qatar, South Korea, Singapore, the United Arab Emirates and the United Kingdom. India was not included in the initial group of countries for the Pax Silica initiative. 

Mr. Helberg added that while the Pax Silica was launched in December, and by January, the U.S. had “already had a meeting of the minds” around India joining Pax Silica. “And so we’re very pleased at the pace at which things have been moving in a very positive direction with our partners in India,” Mr. Helberg said during a briefing organised by the Washington Foreign Press Centre on the Critical Minerals Ministerial that the U.S. hosted last week.

 “India is also home to a large – very large mining and processing operations, which obviously holds great promise to make significant contributions to the supply chain ecosystem. And so there’s a lot of terrain in which we will be able to partner on with India,” he said.

Mr. Helberg further pointed out that outside of China, “India is probably the only other country on Earth to be able to rival China with respect to the breadth and depth of the sheer volume of young, technically trained talent, human talent.”  

“We view India very positively, and President Trump has a great relationship with [Prime Minister] Narendra Modi,” he added.

Also Read | India-U.S. framework strengthens ‘Make in India’ by opening new opportunities for farmers, says PM Modi

Mr. Helberg also said that “we’re very excited and very proud about the bilateral trade deal being concluded with India.” Mr. Helberg’s comment about the trade deal came just hours before India and the U.S. issued a joint statement announcing that the two sides have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade.  Under the agreement, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

According to the joint statement, the U.S. will reduce tariffs on Indian goods to 18%. U.S. President Donald Trump also issued an Executive Order removing the punitive 25% tariffs imposed on India for its purchases of Russian oil.  Mr. Helberg further said that India and the United States are two very large countries, with America by far the world’s largest economy and India the world’s largest country demographically and a very young country, very fast-growing economy. “So for us to align on things, it takes a little bit more work because of the sheer size of our countries,” he said, responding to a question on the role the U.S. envisages for India in Pax Silica and why the country was not initially included in the initiative.

During the briefing, Mr. Helberg spoke about the inaugural Critical Minerals Ministerial meeting hosted in Washington on February 4, 2026 by U.S. Secretary of State Marco Rubio. The ministerial brought together 55 delegations to explore ways to diversify and secure global critical minerals supply chains. External Affairs Minister S. Jaishankar participated in the ministerial and, in his remarks, “underlined challenges of excessive concentration and the importance of de-risking supply chains through structured international cooperation.”

U.S. Treasury Secretary Scott Bessent has claimed that India has “stopped” buying oil from Russia after U.S. President Donald Trump imposed a 25% tariff on countries purchasing oil from Moscow.

Mr. Trump has imposed 50% tariffs on India, including 25% for its purchases of Russian oil.

Speaking with Fox Business, Mr. Bessent said, “India started buying Russian oil after the (Ukraine) conflict began, but President Trump put a 25% tariff on them, and India has geared down and has stopped buying Russian oil.”

India had described the U.S. action as “unfair, unjustified and unreasonable” while maintaining that its energy policy is guided by its own national interest.

A Bill introduced by Senator Lindsey Graham has proposed a 500% tariff on secondary purchase and reselling of Russian oil. The proposal has near-unanimous backing in the Senate Foreign Relations Committee.

While speaking on the Bill, Mr. Bessent said that it is a proposal that Senator Graham has in front of the Senate and “we will see whether that passes. We don’t believe that President Trump needs that authority, that he can do it under IEEPA, but that the Senate wants to give him that authority.”

Mr. Bessent also accused Europe of buying Russian oil and funding Russia’s war against Ukraine.

“And just, just to be clear that we have Europe buying Russian oil, still, still, or four years later, they are financing the war against themselves,” Mr. Bessent added.

India fell to third place among buyers of Russian fossil fuels in December after Reliance Industries and state-owned refiners sharply cut crude oil imports, according to the Centre for Research on Energy and Clean Air (CREA).

India, the world’s third-largest oil importer, emerged as the biggest buyer of discounted Russian crude after Western countries shunned Moscow following its February 2022 invasion of Ukraine.

U.S. President Donald Trump on Monday (December 8, 2025) indicated that he may introduce new tariffs on agricultural imports, particularly Indian rice and fertiliser from Canada, as trade discussions with both countries continue without major progress.

Mr Trump made the comments during a White House meeting where he unveiled $12 billion in new support for American farmers. He said imports were challenging domestic producers and reiterated his intent to address the issue.

The president said he would “take care” of the alleged dumping of Indian rice into the U.S. Farmers have pointed to falling rice prices, claiming imports from countries like India, Vietnam and Thailand are undercutting their crops. “They shouldn’t be dumping,” Mr. Trump said. “I mean, I heard that, I heard that from others. You can’t do that.”

He also suggested possible tariff measures on fertiliser coming from Canada to encourage local production. “A lot of it does come in from Canada, and so we’ll end up putting very severe tariffs on that, if we have to, because that’s the way you want to bolster here,” he said, adding, “And we can do it here. We can all do that here.”

The remarks come amid ongoing economic pressures, including concerns about inflation and consumer prices. Farmers, a key support base for Mr. Trump, have faced rising costs and market challenges linked to tariff policies.

Negotiations with both Canada and India aimed at stabilising trade ties have encountered difficulties. Earlier this year, Mr. Trump imposed 50% tariffs on Indian goods, citing trade barriers and energy purchases. A U.S. delegation is expected to visit India this week for further talks, although no major breakthrough is anticipated.

U.S. President Donald Trump on Monday (December 8, 2025) indicated that he may introduce new tariffs on agricultural imports, particularly Indian rice and fertiliser from Canada, as trade discussions with both countries continue without major progress.

Mr Trump made the comments during a White House meeting where he unveiled $12 billion in new support for American farmers. He said imports were challenging domestic producers and reiterated his intent to address the issue.

The president said he would “take care” of the alleged dumping of Indian rice into the U.S. Farmers have pointed to falling rice prices, claiming imports from countries like India, Vietnam and Thailand are undercutting their crops. “They shouldn’t be dumping,” Mr. Trump said. “I mean, I heard that, I heard that from others. You can’t do that.”

He also suggested possible tariff measures on fertiliser coming from Canada to encourage local production. “A lot of it does come in from Canada, and so we’ll end up putting very severe tariffs on that, if we have to, because that’s the way you want to bolster here,” he said, adding, “And we can do it here. We can all do that here.”

The remarks come amid ongoing economic pressures, including concerns about inflation and consumer prices. Farmers, a key support base for Mr. Trump, have faced rising costs and market challenges linked to tariff policies.

Negotiations with both Canada and India aimed at stabilising trade ties have encountered difficulties. Earlier this year, Mr. Trump imposed 50% tariffs on Indian goods, citing trade barriers and energy purchases. A U.S. delegation is expected to visit India this week for further talks, although no major breakthrough is anticipated.

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).

The higher tariffs imposed on Indian goods by American President Donald Trump would have a long-term impact, especially for India’s marine exports, officials of the Union Ministry of Commerce told the Public Accounts Committee (PAC) headed by senior Congress leader K.C. Venugopal.

The PAC met to deliberate the ‘Performance audit report on the Export Promotion Capital Goods Scheme.

There were several questions on the impact of U.S. tariffs on Indian exports. Rajesh Agarwal, Special Secretary, Department of Commerce, maintained that anxiety over the adverse impact on the Indian pharmaceutical sector was unfounded, since India’s key competitor in this sector was China, which was also reeling under similar tariffs, sources said. He acknowledged that the high tariffs will have a negative long-term effect on trade.

There were several questions on India’s marine exports from both sides of the aisle, including from the PAC Chairperson, Mr. Venugopal. Several members pointed out that many of India’s coastal towns would be directly impacted if shrimp exports declined drastically.

The U.S. has imposed high tariffs, notably a 50% duty implemented in August 2025, which significantly impact India’s marine exports, especially of shrimp, with shrimp exports facing an effective levy exceeding 58% when combined with existing duties. Mr. Agarwal, sources said, conceded that the high tariff barrier had placed India at a disadvantage when compared with its competitors.

Mr. Agarwal, sources said, informed the panel that India was actively working on opening up new markets via Free Trade Agreements with other regions, including the European Free Trade Association (EFTA) bloc (comprising Iceland, Liechtenstein, Norway, and Switzerland), and the U.K., which would “eliminate existing duties”.

EU negotiators were recently in India to discuss these agreements, Mr. Agarwal told the panel, according to sources, and he went on to add that India was focusing on market diversification by successfully pushing for the registration of more marine export units in the EU, and engaging in discussions with other countries, including Russia.

The committee expressed dissatisfaction over the lack of clear outcomes from the Export Promotion Capital Goods Scheme, a policy aimed at facilitating the import of capital goods for producing quality goods and services to enhance India’s manufacturing competitiveness. Under the scheme, duties worth ₹42,714 crore were forgone between financial years 2018-19 to 2020-21. The panel has directed the government to come up with clear answers on how it has helped growth in the manufacturing sector.

The higher tariffs imposed on Indian goods by American President Donald Trump would have a long-term impact, especially for India’s marine exports, officials of the Union Ministry of Commerce told the Public Accounts Committee (PAC) headed by senior Congress leader K.C. Venugopal.

The PAC met to deliberate the ‘Performance audit report on the Export Promotion Capital Goods Scheme.

There were several questions on the impact of U.S. tariffs on Indian exports. Rajesh Agarwal, Special Secretary, Department of Commerce, maintained that anxiety over the adverse impact on the Indian pharmaceutical sector was unfounded, since India’s key competitor in this sector was China, which was also reeling under similar tariffs, sources said. He acknowledged that the high tariffs will have a negative long-term effect on trade.

There were several questions on India’s marine exports from both sides of the aisle, including from the PAC Chairperson, Mr. Venugopal. Several members pointed out that many of India’s coastal towns would be directly impacted if shrimp exports declined drastically.

The U.S. has imposed high tariffs, notably a 50% duty implemented in August 2025, which significantly impact India’s marine exports, especially of shrimp, with shrimp exports facing an effective levy exceeding 58% when combined with existing duties. Mr. Agarwal, sources said, conceded that the high tariff barrier had placed India at a disadvantage when compared with its competitors.

Mr. Agarwal, sources said, informed the panel that India was actively working on opening up new markets via Free Trade Agreements with other regions, including the European Free Trade Association (EFTA) bloc (comprising Iceland, Liechtenstein, Norway, and Switzerland), and the U.K., which would “eliminate existing duties”.

EU negotiators were recently in India to discuss these agreements, Mr. Agarwal told the panel, according to sources, and he went on to add that India was focusing on market diversification by successfully pushing for the registration of more marine export units in the EU, and engaging in discussions with other countries, including Russia.

The committee expressed dissatisfaction over the lack of clear outcomes from the Export Promotion Capital Goods Scheme, a policy aimed at facilitating the import of capital goods for producing quality goods and services to enhance India’s manufacturing competitiveness. Under the scheme, duties worth ₹42,714 crore were forgone between financial years 2018-19 to 2020-21. The panel has directed the government to come up with clear answers on how it has helped growth in the manufacturing sector.

In August this year, the 25% tariff on Indian exports, imposed by U.S. President Donald Trump, came into effect. Prior to this, Mr. Trump had signed an executive order — Addressing Threats to the U.S. by the Government of the Russian Federation — imposing the additional tariff over an above the 25% levy. Mr. Trump had cited India’s tariff and non-tariff measures on trade, and its dealing with Russia on energy and military equipment, as the main reasons behind imposing the 25% tariffs and the penalty. After this order, the total tariff on Indian goods, barring a small exemption list, surged to 50%.

Meanwhile, the Indian government is pushing a ‘Swadeshi’ mantra to reduce the economy’s reliance on exports, with Prime Minister Narendra Modi calling on Indians to be “vocal for local” and buy Indian goods.

In FY25, India’s exports to the U.S. was worth over $86,000 million. India’s imports from the U.S. was worth $45,000 million. In percentage terms, the U.S. formed around 20% of India’s exports and 6.3% of India’s imports.

Here’s a collection of ground reports and analyses, uncovering the impact of these tariffs on different facets of the Indian economy.

As a “continuation” of trade talks between India and the U.S., India will host the U.S. chief negotiator Brendan Lynch for a one-day meeting with India’s chief negotiator Rajesh Agrawal, Mr. Agrawal said on Monday (September 15, 2025).

This follows developments earlier this month, when U.S. President Donald Trump spoke about the “special relationship” the U.S. shares with India, and Prime Minister Narendra Modi “fully reciprocates” the sentiment.

Also Read | Trump, Modi indicate India-U.S. trade talks may resume

These friendly overtures came at a time when the U.S. has imposed a total tariff of 50% on imports from India, which derailed the negotiations on a Bilateral Trade Agreement between the two countries. The latest round of negotiations was to take place during the last week of August, but was indefinitely postponed following the levy of the two-part tariffs on India.

“The chief negotiator of the U.S. is visiting India tonight (September 15) and tomorrow we will be holding talks through the day,” Mr. Agrawal, who leads the negotiations with the U.S. on India’s behalf, said at a press briefing.

Also Read | India ‘fully engaged’ with U.S. on trade deal, says Commerce Secretary

“This is not an official ‘round’ of negotiations but it will definitely be a discussion on the trade talks and on trying to see how we can reach an agreement between India and the U.S.”

Mr. Agrawal said that India and the U.S. have been engaged in discussions at various levels — ranging from the team of negotiators to even at the Ministerial level — and so Tuesday’s (September 16, 2025) meeting should be seen as a “continuation” of the talks.

EDITORIAL | ​Doublespeak: On the Trump administration’s actions and India 

U.S. Ambassador-designate to India Sergio Gor, during his Senate hearing last week, said that Mr. Trump had invited India’s Trade Minister to the U.S.

“We have also noted that, as part of his Senate hearing, he mentioned that the Indian trade minister has been invited,” Mr. Agrawal said. “Tomorrow we will have discussions on it.”

India brags about having 1.4 billion people but won’t buy even a small amount of American corn, United States Commerce Secretary Howard Lutnick has said, asserting that New Delhi must bring down its tariffs or face a “tough time” doing business with the U.S.

Mr. Lutnick made the comments during an interview on Saturday (September 13, 2025) when he was asked whether the U.S. is mismanaging “very valuable relationships” with “important allies” like India, Canada and Brazil with the tariffs imposed on these countries.

Editorial | ​Doublespeak: On the Trump administration’s actions and India  

“The relationship is one way, they sell to us and take advantage of us. They block us from their economy, and they sell to us while we are wide open for them to come in [and] take advantage,” Mr. Lutnick said. “The president says, ‘fair and reciprocal trade’,” he added.

“India brags that they have 1.4 billion people. Why won’t 1.4 billion people buy one bushel of U.S. corn? Doesn’t that rub you the wrong way that they sell everything to us and they won’t buy our corn. They put tariffs on everything,” Mr. Lutnick said.

‘President’s model’

He added that President Donald Trump has said “‘bring down your tariffs, treat us the way we treat you’”. The Commerce Secretary further added “we’ve got to right years of wrong so we want a tariff going the other way until we fix this”.

“That’s the President’s model, and you either accept it or you’re going to have a tough time doing business with the world’s greatest consumer,” Mr. Lutnick said.

The Trump administration has imposed 50% tariffs on India, including 25% for Delhi’s purchases of Russian oil, among the highest imposed on any country in the world.

India has described the U.S. action as “unfair, unjustified and unreasonable”. Defending its purchase of Russian crude oil, India has been maintaining that its energy procurement is driven by national interest and market dynamics.