US Secretary of State Marco Rubio said India had made substantial progress in diversifying its energy supplies and that a trade deal with New Delhi was close, on arrival in Mumbai for a three-day visit. Rubio said the two sides were nearly done, with only a small number of items left to resolve before an agreement could be signed.
Energy and trade ties
Rubio praised India’s efforts to move away from concentrated energy sourcing. He said India was a refining superpower and that the United States could be a source of some of its energy inputs.
Indian goods exports to the United States rose 21 percent in August from a year earlier, reaching 8.3 billion US dollars. India had faced US tariffs of 50 percent in August of the previous year.
Talks reach a plateau
Finance Minister Nirmala Sitharaman said trade talks had reached a plateau, beyond which concessions could become very difficult for either side.
The two countries reached an interim trade agreement in February intended to reduce US tariffs on Indian goods. The US Supreme Court struck down sweeping tariffs imposed by President Donald Trump days later, adding uncertainty to the arrangement.
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Russian oil and sanctions
Trump signed an executive order the previous week waiving threatened sanctions on countries that buy Russian oil. A US law allows tariffs of up to 100 percent on such buyers. India is a major importer of Russian oil.
Economists say higher tariffs would weigh on India’s growth outlook and pressure the already weak rupee. Its economy has been hit by high energy prices linked to the Middle East war.
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