New Delhi, Oct 19: The United States is very close to finalising a trade deal with India, Secretary of State Marco Rubio said on Monday, linking energy waivers and sanctions policy to broader trade considerations ahead of his visit to the country on Tuesday.
“We are trying to finalise a trade deal with India right now. We are very close to doing that,” Rubio said ahead of his India visit on Tuesday. On Russian oil and gas, Rubio said the US had to waive sanctions over past few months because of impact on global supplies and prices.
“We have had to waive sanctions over the past few months because of the impact on global supplies and prices… We have to manage all of these things. We are trying to finalise a trade deal with India right now. We are very close to doing that. That’s one of the things we take into consideration when the President makes a decision about national security waivers and things of that nature.
Every country has a complex set of factors that it has to take into account. Geography is real. For some countries, it’s very difficult to acquire energy from alternative sources. That’s not an excuse, but all of that has to be balanced when making foreign policy,” he said during his Central Asia visit.
India and the United States are close to sealing the first part of a trade agreement, with dairy access the biggest remaining obstacle ahead of his visit to India on Tuesday. President Donald Trump has signed an order implementing the Lindsey O. Graham Sanctioning Russia and Iran Act and waiving its tariffs on buyers of Russian oil.
At its core, the trade negotiation is an exchange: lower and predictable US tariffs on Indian goods in return for wider access for American products in India. Under a framework announced in February, the US cut its reciprocal tariff on Indian goods from 25 per cent to 18 per cent and removed an additional 25 per cent duty linked to India’s purchases of Russian oil.
In return, India committed to eliminate or reduce tariffs on US industrial goods and a range of farm products, including tree nuts, fruit, soybean oil, wine and spirits. Commerce and Industry Minister Piyush Goyal had said that the first tranche had been finalised and was in legal drafting but that implementation would depend on clarity about India’s competitive advantage.
Meanwhile, External Affairs Minister S. Jaishankar had said the talks are nearing a “landing point”. US Trade Representative Jamieson Greer said on October 2 that a deal was not imminent. India’s merchandise exports surged 23 per cent to $44.4 billion in September 2026, while the trade deficit narrowed.
IANS