US President Donald Trump had indicated at easing relations with India, as he hinted at a possible visit to the country next year and progress on trade deals. Talking to the reporters at the White House on Thursday, Trump stated that India has stopped buying oil from Russia to a large extent.
He even said that if the Prime Minister of India extends his invitation, Trump might visit India in 2026. Talking about his previous visits, he called PM Modi a “great man” and his friend. The US-India relations have gone through a tough phase lately, after President Trump imposed 50 per cent tariffs on India. Experts have warned that the missing chemistry might lead to further turmoil. But winds seem to be drifting towards India, as a positive tone is seen in Trump’s speeches.
India, at present, is facing 50% tariffs on its exports, higher than China’s 47%.
Alexandra Hermann, who heads Southeast Asia Research of Oxford Economics, stated that trade talks between India and the US seem to be optimistic, and it might lead to a trade deal by the end of the year. She further said that India’s tariff might even be reduced from 50% to 20% equal to other Asian countries like Thailand, Vietnam, and the Philippines.
However, the tariffs are unlikely to fall below that since several hurdles exist in the form of Russian crude oil purchases, imports in agriculture, and a limited scope for US investments. The US imposed sanctions last month on Russian oil importers Rosneft and Lukoil. The decision came into effect on 21st November, and thereafter, the Chinese and Indian markets have cut down oil imports from Russia.
Prateek Pandey, the head of APAC oil and gas research at Rystad Energy stated that phasing out Russian oil completely will not be possible for India in the long run. Though the crude oil imports from Russia are a hurdle in the US-India relations, coordination seems to be going uphill.
Last week, the Press Secretary of White House, Karoline Leavitt, emphasised Trump’s commitment to deepening ties with India.
