India to cut Russian oil purchases, U.S. to slash tariffs as they near trade deal: Indian media report

WikiFX

| 2025-10-22 12:58

Abstract：The India-U.S. trade talks collapsed earlier this year with New Delhi not agreeing to widen market access to its vast agricultural and dairy sectors.

The U.S. could substantially slash tariffs on Indian exports as the two countries near a trade deal that could see New Delhi cutting oil purchases from Russia, Indian media outlet Mint reported Wednesday.

As part of the trade deal, Washington could slash tariffs on Indian exports to 15%-16% from the current 50%, Mint reported citing three unnamed sources aware of the matter.

India is also considering raising its import quota for non-genetically modified corn from the U.S. — currently 0.5 million tonnes annually — even with a import duty of 15%, while pushing for a mechanism under which both sides can revisit tariffs and market access over time, the report said.

On Tuesday, U.S. President Donald Trump said he had received assurance from Indian Prime Minister Narendra Modi in a phone call that New Delhi would scale back purchases of Russian oil.

“He's not going to buy much oil from Russia. He wants to see that war end as much as I do. He wants to see the war end with Russia, Ukraine, and as you know, they're not going to be buying too much oil,” Trump told reporters abroad Air Force One, while threatening that New Delhi would keep paying “massive” tariffs if it did not do so.

In a post on X on Wednesday morning local time, Modi confirmed the phone call with Trump, adding that he hoped the two countries continue to “stand united against terrorism in all its forms,” without mentioning India's stance on Russian oil.

Trump last week also said that Modi in a call had agreed to cut Russian oil purchases. India's foreign ministry spokesperson said the following day that he was not aware of any call between Trump and Modi.

On the question of cutting oil imports from Russia, the spokesperson said Thursday, “India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective.”