India awaits US’ response to its trade proposal
However, India’s purchase of Russian oil remains a sticking point as the US has demanded that India should stop its purchases from Moscow
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India is waiting for a response from the US to its proposal on the bilateral trade deal being negotiated and does not see the need for additional rounds of negotiations, government, sources said.
“India has kept in mind each sensitive sector (and protected them) in the proposal made to the US for the India-US bilateral trade agreement (BTA). The talks are progressing well between both sides…India is waiting for US response to its proposal and another round may not be needed,” the source tracking the matter closely said.
US President Donald Trump said on Monday that trade talks with India had made significant progress and the two sides were reaching a fair and balanced agreement.
“We’re making a deal with India — much different what we had. Right now, they don’t love me, but they will love us again. We’re getting a fair deal. They’re very good negotiators, so Sergio, you will have to take a look at that. I think we’re pretty close to doing a deal that is good for everybody,” Trump said at the swearing-in ceremony of Sergio Gor as the new US Ambassador to India at the Oval Office on Monday.
However, India’s purchase of Russian oil remains a sticking point as the US has demanded that India should stop its purchases from Moscow. It alleged that the oil purchase was fuelling Russia’s war on Ukraine but Delhi argued that it should not be singled out as it had not gone against any restrictions on the energy purchase.
“India has given its offer of opening up its markets in several sectors that will help the US increase its exports to the country and lessen the trade imbalance. But it does not want to stop oil purchases from Russia following a diktat as the country’s energy security is of utmost importance and India’s ties with Russia have been historically strong,” another source said.
The US imposed 50 per cent duties on India in August of which 25 per cent is a penalty for buying Russian oil. For the BTA to happen, the entire penalty has to be rolled back. “India’s competitors in the US, such as Vietnam and Bangladesh, face duties of 19-20 per cent. The duties on India have to be lower for the country to have an edge in the US market. The oil penalty has to be rolled back completely and the reciprocal tariff, too, has to be brought down for that to happen,” the source explained.
Apart from Russian oil, the demand made by the US in the agriculture and dairy sectors, especially for market access for soya and corn, is another bone of contention between the two sides. “Agriculture and dairy sectors are very sensitive in India and the country does not allow genetically modified soya and corn. But the US has been pursuing its demand strongly,” the source said.
Published on November 11, 2025
