India and America Strike Historic Trade Deal, Oil Ties With Russia to End
India and the United States have reached a landmark trade agreement that will reshape economic relations between the world’s oldest and largest democracies. Commerce Minister Piyush Goyal announced Thursday that the deal will be signed by mid-March, with a joint statement expected within five days, according to NDTV.
Under the agreement’s terms, Washington will slash reciprocal tariffs on Indian goods to 18 percent, lower than levies on any other major exporting nation. In exchange, New Delhi has committed to purchasing $500 billion worth of American energy and technology products while severing its oil imports from Russia.
The announcement sparked immediate controversy. Opposition parties, furious at being excluded from negotiations, disrupted Parliament sessions and demanded transparency. Questions swirled around implementation timelines and alternative oil sources, India imported nearly 21 million barrels of Russian crude in 2025 alone.
Government sources moved quickly to reassure anxious domestic constituencies. India’s price sensitive agriculture, dairy, and fisheries sectors, lifelines for millions of subsistence farmers and marginalized communities, have been adequately protected from American competition, officials stressed. These sectors had become sticking points in negotiations, with Washington reportedly demanding market access that could threaten livelihoods across rural India.
The Indian negotiating team held firm, making clear such concessions were non-negotiable.
Goyal, whose parliamentary address was repeatedly drowned out by opposition protests, managed to outline the deal’s potential benefits during brief moments of calm. He emphasized opportunities for domestic manufacturing, support for the struggling small and medium enterprise sector, and boosted design capabilities.
President Donald Trump unveiled the agreement Monday night via Truth Social, calling it the first step toward a comprehensive trade partnership. Both nations expect bilateral trade to surge to $500 billion by 2030, a staggering increase that could fundamentally alter global economic patterns.
The deal joins other 2025 trade agreements India signed with Oman, the United Kingdom, New Zealand, and the European Union, none of which required agricultural concessions either, sources noted.
