(Commonwealth_India) India and the United States are preparing to restart crucial trade talks this week, with New Delhi signaling its intent to buy more American energy and gas to ease Washington’s concerns over India’s continued purchases of Russian oil. The renewed dialogue marks an attempt by both sides to steady relations after months of tension and uncertainty.
The talks had briefly been suspended in August, following the Trump administration’s decision to impose hefty tariff hikes—up to 50%—on several Indian goods. Washington had accused India of indirectly supporting Russia’s war in Ukraine by continuing to import discounted Russian crude despite Western sanctions. The move hit Indian exporters hard and stirred unease in New Delhi, which has long sought to balance its strategic and economic ties between the West and Moscow.
But recently, there has been a noticeable shift in tone. In September, U.S. President Donald Trump struck a more conciliatory note in public comments and followed it up with a personal phone call to Prime Minister Narendra Modi. The conversation reportedly helped break the impasse and paved the way for talks to resume. Officials on both sides have since described the upcoming meeting as “constructive” and “forward-looking.”
According to an Indian government official familiar with the discussions, New Delhi now plans to ramp up its purchases of energy and gas from the United States—a move intended to reassure Washington of India’s commitment to strengthening bilateral economic ties. The official said the country was also encouraging U.S. investment in India’s growing renewable and nuclear energy sectors, signaling that New Delhi wants American firms to play a bigger role in its green transition.
Over the weekend, U.S. ambassador-designate Sergio Gor met with Prime Minister Modi and later with Commerce Secretary Rajesh Agrawal to discuss trade, energy, and investment opportunities. “During my visit to India, I met with Commerce Secretary Agrawal and discussed U.S.-India economic ties, including increased investment in the United States,” Gor posted on X (formerly Twitter) after the meetings.
The two governments have been in negotiations since February 2025, with the shared goal of doubling bilateral trade to $500 billion by the end of the decade. So far, five rounds of discussions have been completed, and the sixth—postponed in August amid tariff tensions—is now expected to take place later this month. If successful, it could mark the first phase of a much-anticipated trade agreement that Trump and Modi have both publicly backed.
Meanwhile, the U.S. tariffs have already taken a toll on India’s export sector. Industries ranging from textiles and leather goods to gems, jewelry, and food products have all suffered setbacks. Official trade ministry data shows that India’s exports to the U.S. dropped from $8.01 billion in July to $6.86 billion in August, with early estimates suggesting a further dip in September. In response, New Delhi has been actively exploring new markets and implementing incentives to assist exporters in navigating the current challenges.
Still, Indian officials believe that repairing ties with Washington remains a priority. Beyond trade, the partnership has deepened in other areas—from defense cooperation to technology exchange. Energy, however, is fast emerging as the linchpin of this new phase of engagement.
“Investments coming into our renewable energy sectors are an important area of our relationship with the U.S.,” the Indian official said, adding that India is also open to buying more liquefied natural gas (LNG) from American suppliers to diversify its energy mix.
When asked about U.S. calls for increased Indian investment in America, the official noted that New Delhi was not opposed to the idea. “We see overseas investments by Indian companies as a positive step, much like China has done,” the source explained.
While challenges remain, there is growing optimism that the two democracies—often described as natural partners—can find common ground. For both sides, this week’s meeting is about more than tariffs and trade data; it’s a chance to rebuild trust, align economic priorities, and signal that even amid global tensions, cooperation between India and the U.S. remains not only possible but essential.
