Rubio: India trade deal 'very close' as oil imports diversify

Rubio hails oil diversification progress

US Secretary of State Marco Rubio arrived in Mumbai on Tuesday for a three-day visit, declaring that a comprehensive trade agreement with India was "very close" while praising New Delhi's efforts to reduce dependence on Russian energy supplies. Speaking to reporters in India's financial capital, Rubio noted that diversifying energy sources "is not easy to do... from one day to the next," but added that Indian officials had expressed "repeatedly... their desire to diversify their energy portfolio, which is a smart thing to do." The Secretary of State emphasized that New Delhi had made "substantial progress" in this regard, welcoming the shift as a positive development in bilateral energy relations.

Trade negotiations in final stages

The top US diplomat held talks with Foreign Minister Subrahmanyam Jaishankar during which both sides discussed "energy security and defence cooperation while reaffirming the importance of advancing the US-India strategic partnership," Rubio said on social media after their meeting. "We're very, very close; I would say we're about as close as you can be without having an executed agreement," Rubio told reporters, adding that only a "small number of items" remained to be resolved. "Hopefully have some good news to announce fairly soon, and perhaps the leaders can sign it thereafter," he said.

Tariff uncertainties loom

The two countries concluded an interim trade deal in February aimed at reducing US tariffs on Indian goods, though the agreement's implementation faced uncertainty after the US Supreme Court struck down President Donald Trump's sweeping tariff measures days later. India has remained wary of American trade pressure, including legislation permitting tariffs of up to 100 percent on countries purchasing Russian oil, although Trump signed an executive order last week waiving those threatened sanctions. Agriculture represents a particularly sensitive area for Indian negotiators, who have resisted exposing domestic farmers to foreign competition, while Washington continues to push for increased Indian purchases of US energy supplies.

Economic stakes

Rubio is scheduled to travel to Jamnagar in the western state of Gujarat, home to the world's largest refinery operated by billionaire Mukesh Ambani's Reliance conglomerate, where he emphasized that "India is a refining superpower" and stated that "we think we could be a source of some of their energy inputs." Indian goods exports to the United States jumped 21 percent in August to $8.3 billion compared to the same month a year earlier, providing a bright spot for an economy roiled by high energy prices linked to the Middle East war. Economists have warned that renewed tariff pressures would cast a shadow over India's growth outlook, hurt market sentiment, and heap additional pressure on the already-weak rupee.