India, US to hold trade talks as New Delhi seeks higher energy imports

India has already held five rounds of trade talks with the US

India and the United States are set to hold trade talks this week, with New Delhi pledging to import US energy and gas as it aims to address Washington's concerns over its Russian oil purchases, an official said.

Talks were suspended briefly in August after the Trump administration announced tariff hikes of up to 50 percent on Indian goods, accusing India of financing Russia's war in Ukraine by continuing to buy Moscow's oil despite western sanctions.

However, discussions resumed in September after US President Donald Trump struck a conciliatory tone in public remarks and spoke to Prime Minister Narendra Modi on the phone, raising hopes for a breakthrough.

The official, speaking on condition of anonymity, due to the sensitivity of the issue, said India was looking to increase purchases of energy and gas from the US.

The move follows US ambassador-designate Sergio Gor's meetings over the weekend with Modi and later with Commerce Secretary Rajesh Agrawal on strengthening bilateral trade and investment.

"During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States," Gor said on 'X' on Sunday.

Indian officials held "constructive" talks with US counterparts in Washington last month, the government said, adding that both sides agreed to push for an early conclusion of a mutually beneficial trade deal.

The US tariff hikes have hurt Indian exports of textiles, leather goods, gems & jewellery, and food products, prompting the government to diversify markets and offer incentives to exporters.

India's exports to the United States fell to $6.86 billion in August from $8.01 billion in July, trade ministry data showed, with exporters reporting further declines in September.

Negotiations began in February 2025, targeting a deal to double bilateral trade to $500 billion by 2030.

The two sides have held five rounds of trade talks, with the sixth - postponed in August - now expected to lead to the first phase of the deal next month, as agreed by Trump and Modi.

India is seeking greater participation from private players, including US firms, in its renewable and nuclear energy sectors.

"Investments coming into our renewable energy sectors are an important area of our relationship (with the US)," the official said, noting that New Delhi was open to buying more Liquefied Natural Gas (LNG) from the United States.

When asked about the Trump administration's calls for greater Indian investment in the US, the source said New Delhi was not opposed and viewed overseas investments by Indian firms positively, similar to China’s approach.