India says it’s narrowing gap with US on trade deal dispute

[GREATER DELHI] India said it’s making solid progress in trade negotiations with the US as it looks to clinch a trade deal and bring down punitive tariffs.

The two sides have narrowed their differences on trade-related matters, an Indian official told reporters in New Delhi on Saturday (Oct 18), asking not to be identified as the discussions are private. There are no major differences between India and the US on trade issues, the person said.

A team of negotiators from India had positive meetings with officials in Washington last week, the person said. 

After slapping India with 50 per cent tariffs and bashing the country for buying oil from Russia, US President Donald Trump has softened his rhetoric in recent weeks and spoken with Indian Prime Minister Narendra Modi at least twice. Trump said last week that India will stop buying oil from Russia, although it’s likely to be a gradual process. 

Unlike previous denials, Modi’s government hasn’t directly opposed Trump’s comments. New Delhi said last week that energy purchases would be made with consumers’ interests in mind. State refiners have said they expect to reduce Russian energy purchases, while government officials said India has the capacity to buy more US oil.

India became a major importer of Russian crude after the start of the war in Ukraine in 2022, buying oil at a discount. Russian oil makes up about one-third of India’s overall imports in spite of the US push to curb flows. BLOOMBERG