INDIA-US TRADE DEAL NERING COMPLETION

INDIA-US TRADE DEAL NERING COMPLETION

21-OCT-ENG 1

RAJIV NAYAN AGRAWAL

DELHI--------------------------Despite current strains in their relationship, India and the United States moved toward expanding cooperation in energy and defense on Tuesday. Meanwhile, US Secretary of State Marco Rubio urged New Delhi to boost energy trade and increase the procurement of American technologies and systems.

Shortly after the top US diplomat arrived in Mumbai—his second visit to India in less than five months—External Affairs Minister S. Jaishankar hosted comprehensive talks with Rubio. The discussions took place against a backdrop of bilateral tension, fueled by the US’s unpredictable trade policies and increasingly stringent immigration regulations.

The Ministry of External Affairs stated that both sides welcomed the progress made in negotiations regarding an India-US bilateral trade agreement and reaffirmed their commitment to finalizing it soon.

Ahead of the meeting, Rubio described India as a "refining superpower" and advocated for the processing of more Venezuelan crude oil within the country. The US Secretary of State is scheduled to visit the Jamnagar refinery, owned by Reliance Industries Limited, on Wednesday.

Responding to a question about the proposed India-US trade agreement, Rubio noted that work remains to be completed on only "a few items." He expressed optimism that the deal would be finalized "soon."

"I would say we are as close as we can possibly be without having an agreement in place," he remarked. "I think there are just a few remaining issues to be finalized. So, I believe it will happen soon—we certainly hope so, and it should—and hopefully, we will be able to announce some good news quite shortly. Perhaps, following that, the leaders will be able to sign it." Following the meeting, Jaishankar stated on social media that he and Rubio “shared perspectives on further advancing our relationship, with a focus on trade, energy, technology, defense, and people-to-people ties.”

The U.S. Department of State reported that the two leaders (Rubio and Jaishankar) discussed regional and global issues, including developments in West Asia.

The U.S. Department of State noted that Rubio reiterated that expanding energy trade with the United States could play a transformative role in diversifying India’s supply chains, while also helping to meet India’s substantial consumer demand.

The Department added, “They also welcomed recent progress in bilateral defense and civil nuclear cooperation, and supported increased procurement of U.S. technology and systems, which can enhance the security and prosperity of both our nations.” In a statement issued late in the evening, the Ministry of External Affairs (MEA) stated that both sides reviewed all aspects of India-US relations and discussed ways to further strengthen their ‘comprehensive global strategic partnership.’

The MEA noted that Rubio’s visit reflects the sustained momentum of high-level exchanges between the two nations and underscores the importance both sides place on advancing India-US relations for the 21st century.

Prior to his discussions with Jaishankar, Rubio visited the Taj Mahal Palace Hotel and paid tribute to the victims of the 26/11 Mumbai terror attacks by laying a wreath. The attacks claimed many lives, including those of six American citizens.

On ‘X’ (formerly Twitter), the US Secretary of State remarked, “In Mumbai, India’s External Affairs Minister Dr. S. Jaishankar and I discussed energy security and defense cooperation, and reaffirmed the importance of advancing the US-India strategic partnership.”

US Ambassador to India, Sergio Gor, stated that Rubio and Jaishankar held “productive discussions” on deepening US-India cooperation in the areas of defense, energy, emerging technologies, and trade, as “we continue to build on the unparalleled momentum in our bilateral partnership.” Ambassador Gor was also present during the meeting.

In a brief interaction with the media, Rubio addressed a question regarding whether the US administration was displeased with New Delhi over the volume of Russian oil purchased by India last year and its efforts to reduce such imports.

He stated, “India has repeatedly expressed a desire to diversify its energy ‘portfolio,’ which is a sensible approach. Achieving this is not something that can happen overnight.” Rubio stated, "I think they have made very good progress in this direction, and we are pleased to see that. But ultimately, it is not just about Russian oil; it is about India’s desire to diversify its energy sources, and we believe we can be a source for India’s energy needs."

He added, "We have discussed Venezuela and other countries, and I believe it is in our interest to have strong allies with diversified energy portfolios."

The US Secretary of State also praised India’s oil-processing capabilities.

He remarked, "India is a refining superpower. It has the capacity to process heavy crude oil. It has done so in the past, and I believe it can do so again as more Venezuelan oil enters the market."

Rubio noted, "They already hold oil leases in Venezuela, which they could utilize to increase production themselves." .can.”

He stated, “I am not claiming that Venezuela alone can bridge the shortfall caused by certain global events; however, I believe that over time it certainly could, and in the short term, it could definitely be of help.”

The top diplomat also responded to a question regarding his visit to the Reliance Industries Limited refinery in Jamnagar on Wednesday.

He remarked, “Energy is a matter of national security. Nations have fought wars over energy; economies have collapsed due to energy shortages. We are engaging with a company that possesses immense refining capacity. It is entirely logical to hold discussions with them on this subject.”

During an interaction with the media, Rubio noted that various geopolitical developments—including the situation in the Strait of Hormuz and Houthi rebel attacks on energy pipelines in Saudi Arabia—have impacted energy supplies, leaving several nations grappling with diesel shortages.

Last week, U.S. President Donald Trump suspended certain sanctions related to Russia and its oil—sanctions that had affected five of the largest buyers of Russian oil, including India. He also announced an agreement with Russian President Vladimir Putin, under which hundreds of thousands of tonnes of Russian diesel would be released into the global market.

Rubio and Jaishankar also laid a wreath at the 26/11 memorial at the Taj Hotel to pay tribute to the victims of the terrorist attack.

In a social media post, Jaishankar stated, “We must continue our robust partnership in combating terrorism in all its forms and manifestations.” India-US relations had seen a significant decline following the imposition of punitive tariffs on India by the US last year, and claims by Trump—made in May 2025—regarding his role in de-escalating a military confrontation between India and Pakistan. Indian officials had reacted sharply to these claims.

The US's new immigration policy and the decision to increase H-1B visa fees also contributed to the deterioration of India-US relations.

Furthermore, relations between the two nations became even more strained when the US decided to restrict a key green-card processing program that benefited major global and Indian IT companies, such as Tata Consultancy Services (TCS) and Wipro.