India and the United States are nearing the conclusion of a long-delayed trade agreement that could significantly lower American tariffs on Indian goods, according to a report by Mint. The deal would reportedly reduce US tariffs on Indian imports from the current 50 percent to around 15–16 percent, marking a major breakthrough in bilateral trade relations.
The proposed agreement is said to center on energy and agricultural cooperation. As part of the understanding, India may gradually reduce its imports of Russian crude oil. Neither Ministry of Commerce and Industry of India nor the White House has commented on the report so far.
US President Donald Trump said he held discussions with Indian Prime Minister Narendra Modi earlier this week, with trade being a key focus. Trump mentioned that energy issues were part of the talks and that Modi assured him India would curb its oil purchases from Russia.
Modi confirmed the conversation on X, expressing gratitude for Trump’s Diwali greetings and emphasizing the shared democratic values of both nations. “On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” he said.
According to the Mint report, India may also allow increased imports of non-genetically modified US corn and soymeal as part of the negotiations. The deal could include a built-in mechanism for periodic tariff and market access reviews to ensure a balanced trade relationship.
The agreement is expected to be finalized and announced at the upcoming ASEAN Summit later this month, signaling a new chapter in India-US economic ties.
