India, US hold productive trade talks; interim deal expected soon

Commerce Minister Piyush Goyal departed for a seven-day visit to the United States to meet with his US counterpart as India and Washington work towards finalizing an interim trade deal. The negotiations come at a critical juncture, with both sides still discussing rates applicable to Indian goods entering the US market, according to a Bloomberg report. The US remains New Delhi's largest export market, accounting for nearly a fifth of India's total exports.

However, India's continued purchases of Russian oil have emerged as a potential hurdle in the trade negotiations. This follows a new US law that gives President Donald Trump the power to impose penalties of up to 100 per cent on countries buying Russian oil and gas. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was cleared last month. India and the US have yet to sign an interim trade agreement pursued earlier this year, despite both sides expressing commitment to advance a balanced and mutually beneficial bilateral trade agreement.

Goyal stated days before his US trip that the trade pact was "done and dusted," but would be implemented once the US provides India with a level playing field against its competitors in the American market. The two sides had agreed on a framework for the first phase of their bilateral trade agreement in February, though subsequent shifts in US tariff policies have prompted continued negotiations.