Published: 12:04 AM, 21 October 2026
US, India seek to finalize trade deal
US Secretary of State Marco Rubio, left, shakes hands with India's Foreign Minister Subrahmanyam Jaishankar, right, before their meeting in Mumbai, India, Tuesday, October 20, 2026. -AP
US Secretary of State Marco Rubio held talks with Indian Foreign Minister Subrahmanyam Jaishankar in Mumbai on Tuesday as Washington and New Delhi seek to finalise a long-delayed trade agreement and strengthen energy cooperation.
The two countries are trying to revive trade negotiations that stalled for months amid tensions over US tariffs and India's purchases of Russian oil.
"We're very, very close. I would say we're about as close as you can be without having executed the agreement," Rubio told reporters in Mumbai, adding that only a small number of issues remained to be resolved and an agreement could be reached shortly, AP reports.
India's foreign ministry said the discussions were expected to cover major areas of bilateral cooperation, including energy, trade, investment and defence.
Washington imposed tariffs of up to 50% on most Indian goods in August 2025 after trade negotiations broke down. Under a framework agreed in February 2026, the tariff rate was reduced to 18%, but talks have since made little progress.
Earlier this month, Indian Finance Minister Nirmala Sitharaman said the negotiations had "plateaued". However, Commerce and Industry Minister Piyush Goyal said last week that the first phase of a trade agreement was in its final stages.
India wants its final tariff rate to be comparable to those imposed on competing manufacturing economies such as Vietnam.
Energy trade has also been a source of friction between the two countries. India's purchases of discounted Russian crude since the start of the war in Ukraine have periodically strained relations with Washington.
New Delhi has said it plans to expand energy imports, including from the United States, while diversifying its suppliers to maintain market stability and keep prices affordable.
Speaking to reporters on Saturday before leaving for India, Rubio acknowledged that New Delhi had diversified its energy sources but continued to import substantial quantities of Russian oil, making an immediate shift to other suppliers difficult.
"You've got countries like India, for example, that have voluntarily diversified their energy portfolio but are still getting a substantial amount of energy from Russia because it's hard to pivot from one day to the next," he said, describing India as an important US ally and partner.
Despite disagreements over trade and energy, Washington and New Delhi continue to strengthen cooperation in defence and technology. The United States considers India an important strategic counterweight to China in the Indo-Pacific region.
Rubio's visit to India followed a trip to Uzbekistan aimed at promoting trade and strengthening ties with Central Asian countries.
According to the US State Department, Rubio is scheduled to visit a refinery in Jamnagar, Gujarat, on Wednesday and meet business leaders.
The facility, operated by Indian billionaire Mukesh Ambani's Reliance Industries, is the world's largest refining complex. In March, US President Donald Trump announced that the company was investing $300 billion to establish an oil refinery in Brownsville, Texas.
Rubio last visited India in May.
