US Secretary of State Marco Rubio on Tuesday expressed optimism about the India-US trade deal, saying the two sides were “very, very close” to finalising the agreement, while signalling Washington’s interest in expanding energy cooperation with Reliance Industries, including the refining of Venezuelan crude oil.
Rubio, who arrived in Mumbai on October 20 for a three-day visit, described India as a global “refining superpower” and said Washington would discuss opportunities for Reliance to process more Venezuelan crude at its Indian refineries.
He also indicated that the Indian conglomerate could explore producing oil in Venezuela.
The visit comes at a sensitive juncture in India-US relations, with trade disputes and tariff tensions persisting even as New Delhi continues to buy Russian crude to diversify its energy supplies and safeguard its energy security.
However, US President Donald Trump’s recent decision to waive potential sanctions-related tariffs on major buyers of Russian crude could remove one significant obstacle to a bilateral trade agreement, as per Reuters report.
Against this backdrop, Rubio’s engagements with External Affairs Minister S Jaishankar in Mumbai and Reliance Industries chairman Mukesh Ambani in Jamnagar underscore the importance Washington is placing on commercial and energy diplomacy alongside its broader strategic partnership with India.
India-US trade deal: ‘Very, very close’, says Rubio
Rubio struck an optimistic note on the long-pending India-US trade agreement, saying the negotiations were nearing completion, with only a few issues left to resolve.
“We’re very, very close. I would say we’re about as close as you can be without having executed the agreement,” Rubio told reporters in Mumbai on Tuesday.
Following the meeting between Jaishankar and Rubio, the Ministry of External Affairs (MEA) said the two sides discussed a broad range of issues, including trade, defence, technology and energy security.
“They welcomed the progress made in negotiations on the India–U.S. Bilateral Trade Agreement (BTA) and reaffirmed their commitment to working towards its early conclusion,” the MEA said in a statement.
The ministers also exchanged views on regional and global developments, according to the ministry.
Why is Rubio visiting Mumbai and Jamnagar instead of Delhi?
One of the most striking aspects of Rubio’s itinerary is its emphasis on India’s financial and industrial centres rather than New Delhi, where high-level diplomatic engagements with visiting US officials would ordinarily be expected to take place.
Mumbai provides access to corporate leaders and financial institutions, while Jamnagar in Gujarat is home to Reliance Industries’ twin refineries, which together form the world’s largest single-location refining complex.
US Ambassador to India Sergio Gor has said that the visit would have a stronger business focus, with Rubio scheduled to meet government officials in Mumbai and business representatives in Jamnagar.
Suresh K Goel, a former Indian diplomat, said the choice of locations raised questions about the nature of the visit and the agenda behind the engagements.
“If the Ministry of External Affairs prepared the programme, I do find it that this meeting was not scheduled earlier in Delhi and that he was going to Mumbai or to Jamnagar. Clearly, the agenda for the meeting was not official talks or anything,” Goel told LiveMint.
Why is Reliance Industries important to the US energy agenda?
Rubio’s planned engagement with Reliance highlights the role India’s refining capacity could play in Washington’s efforts to expand markets for Venezuelan crude.
The US secretary of state said Washington would discuss encouraging Reliance to refine more Venezuelan oil at its Indian facilities and potentially explore oil production opportunities in Venezuela.
Reliance operates a massive refining complex in Jamnagar, giving it the capacity to process a wide range of crude grades. Its role could therefore be significant in any effort to expand the flow of Venezuelan oil to India.
For Washington, the discussions offer a potential commercial avenue for strengthening energy ties with India.
Rubio’s visit is also expected to include a meeting with Reliance chairman Mukesh Ambani, bringing one of India’s largest corporate groups into discussions that extend beyond conventional government-to-government diplomacy.
Russian oil, Trump’s tariff threat and the road to a trade deal
Trump’s administration had authorised the possibility of imposing tariffs of up to 100% on major importers of Russian oil, a measure that could have affected India, the world’s second-largest buyer of Russian crude after China.
However, Trump recently waived potential tariffs targeting major buyers of Russian oil, removing one possible stumbling block in the trade negotiations with New Delhi, as per a Reuters report.
The move has also drawn criticism from US lawmakers who argue that Washington has been insufficiently tough on Moscow.
Why the strategic partnership still matters
Despite the strains over trade and Russian oil, India remains an important partner for the United States because of its economic potential, democratic institutions and cooperation across multiple strategic sectors, according to Goel.
Goel cautioned against allowing trade disputes or differences in diplomatic approach to overshadow the broader relationship.
“The relationship between India and the USA is very, very important in all respects. And therefore, the government, rather than becoming part of this temperament or trade effect kind of a thing, has to be mature in our dealing and try and see how we can actually conduct the relationship,” Goel told LiveMint.
He also emphasised India’s significance as a democratic and economic partner for Washington in Asia.
“India continues to be important for the USA as an economic and democratic partner. After all, if you look at Asia, which is the other democracy which can compare in terms of relationship?” Goel said.