India and the United States are close to finalizing a long-stalled trade agreement that would reduce American tariffs on Indian imports from 50% to 16%.

The agreement, which focuses on energy and agriculture, could see India gradually reduce its imports of Russian crude oil, according to the report.

Key Highlights

• India and the U.S. nearing trade deal — tariffs on Indian exports could fall to 15-16%.
• Deal hinges on energy & agriculture: India may reduce Russian oil imports as part of accord.

US President Donald Trump stated that he spoke with Prime Minister Narendra Modi on Tuesday. The discussion was primarily about trade, he said. Trump stated that energy was also discussed, and Modi assured him that India would limit its purchases of Russian oil.

India's oil purchases from Russia prompted a 25% punitive levy on Indian exports, which is higher than the 25% reciprocal tariffs announced in April.

Russia currently supplies roughly 34% of India's crude oil imports, while the United States provides approximately 10% of the country's oil and gas requirements (by value).

India may also expand its markets for non-genetically modified (non-GM) American corn and soymeal. According to the Mint report, New Delhi is also advocating for a provision in the agreement that would allow for periodic tariff and market access reviews.

The finalization of a bilateral trade agreement is expected to be announced at the ASEAN Summit this month during a meeting between Donald Trump and Narendra Modi, the report added.

India is considering raising the quota for importing non-GM maize from the United States while keeping the 15% duty unchanged. The current annual limit is 0.5 million tonnes, according to the report. New Delhi may also allow more American corn to meet rising domestic demand in the poultry feed, dairy, and ethanol sectors.

"Talks are also underway to allow imports of non-GM soymeal for human and livestock consumption. However, there is still no final clarity on tariff reductions for dairy products, including high-end cheese, despite being a key demand from the US team," said one of the officials.

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Regarding energy, India may gradually reduce its reliance on Russian oil while allowing ethanol imports from the United States. Washington, in turn, is expected to make concessions in energy trade. Indian state-owned oil companies may be informally advised to diversify crude sourcing toward the United States.

Officials have informed Moscow that India will reduce its Russian crude imports, though the United States has yet to match Russia's discounts. According to reports, President Trump has made limiting Russian oil imports a precondition for the trade agreement.