New trade talks between India and the U.S. have led to reduced tariffs, but New Delhi says energy security drives its oil import decisions, not pressure from Washington.

New Delh: Talks between Donald Trump and Narendra Modi have produced a headline-grabbing trade understanding that sharply lowers U.S. tariffs on Indian exports from around 50 per cent to 18 per cent raising hopes of smoother market access. The agreement also envisages India cutting its own trade barriers and expanding purchases of U.S. goods, with formal signing expected by March.

In public statements about the deal, Trump tied tariff relief to India’s apparent commitment to end purchases of Russian oil, a move he framed as part of broader geopolitical and economic cooperation between the two countries.

However, officials in New Delhi have emphasised a different priority. The Ministry of External Affairs and other government spokespeople have repeatedly stressed that India’s energy decisions are guided by the need to secure reliable supplies for its 1.4 billion citizens and are based on commercial viability, not external pressure. While tariff reductions are confirmed, New Delhi has not publicly acknowledged a formal commitment to halt Russian oil imports.

Analysis: The trade deal’s tariff component is a boost for exporters and markets, but its linkage with energy choices underscores how trade diplomacy and geopolitics are increasingly intertwined. For Indian consumers and industries, clarity on energy sourcing remains vital given the strategic importance of oil for growth and inflation. This assessment reflects analytical opinion; all factual points above are drawn from the sourced reporting.