U.S. Secretary of State Marco Rubio arrived in India on Tuesday for a two-day visit aimed at advancing a pending trade deal with the country. The visit follows the U.S. decision to waive tariffs on Russian oil imports for major buyers, including India, which has been a key purchaser of discounted Russian crude since Russia’s invasion of Ukraine in 2022.
During his trip, Rubio met with Indian Foreign Minister Subrahmanyam Jaishankar in Mumbai, where both officials discussed strengthening bilateral ties in trade, energy, technology, and defense. The two countries are seeking to finalize a trade agreement that has faced delays due to disputes over U.S. tariffs and India’s energy imports. Jaishankar also participated in a trilateral meeting with UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan, focusing on regional energy security and economic priorities.
Rubio stated that the trade deal is "very close" to completion, with only a small number of remaining issues to resolve. He emphasized the strategic importance of the agreement, noting that India is a key ally despite differing approaches to energy sourcing. "We’re very close to doing that," Rubio said. "I think there’s a small number of items left to wrap up, so I think that will happen shortly."
Trade Tensions and Policy Shifts
The U.S. and India have been negotiating a trade framework since February 2025, when Washington reduced tariffs on Indian goods from 50% to 18% after stalled talks. However, progress has since plateaued, with Indian officials stating that the current tariff rate remains higher than those imposed on competing manufacturing nations like Vietnam. India’s purchases of Russian crude have further complicated the negotiations, straining diplomatic relations at times.
In response to questions about the U.S. waiver on Russian oil tariffs, Rubio acknowledged the complexity of global energy markets. "Geography is real. For some countries it’s very difficult to acquire energy from alternative sources," he said. "That’s not an excuse, but all of that has to be balanced when you make foreign policy."
Energy Cooperation and Future Steps
During the visit, Rubio is also scheduled to meet with Mukesh Ambani, chairman of Reliance Industries, which operates the world’s largest refining complex in Jamnagar. The discussions are expected to explore ways to enhance energy cooperation between the two countries, including potential diversification of India’s energy portfolio.
Indian officials have indicated that while they aim to reduce reliance on Russian oil, the transition will take time due to logistical and economic constraints. The U.S. has framed the waiver as a temporary measure to assess the broader economic impact of sanctions and tariffs on global and domestic markets.
The trade deal, once finalized, is expected to strengthen economic ties between the U.S. and India, two of the world’s largest economies. Both sides have described the negotiations as a priority, though key differences remain unresolved.