US sticks to Russia oil rider as Goyal claims progress in trade talks

Commerce and Industry Minister Piyush Goyal on Thursday asserted that discussions were underway on the bilateral trade agreement (BTA) with the US in a “very good environment" and both sides were satisfied with the progress made in the negotiations.

Goyal’s remarks were, however, contradicted by US Commerce Secretary Howard Lutnick, who said he believed Washington would sort out the trade deal as soon as Delhi stopped buying Russian oil.

Speaking to reporters during a press conference in poll-bound Bihar, Goyal recalled directives from the top leadership in February this year when the BTA was announced. “In February, Prime Minister Narendra Modi and President Donald Trump together instructed us that the ministers of both sides should make a good agreement by November 2025. The first tranche of the agreement should be finalised by then… since March, discussions are underway on this subject very seriously in a very good environment. Both sides are satisfied with the progress," he said.

The minister’s remarks come amid recent signals of a thaw in the India-US trade relations, which have been strained by the 50 per cent tariffs imposed on Indian imports for buying Russian oil.

On Wednesday, President Trump posted on Truth Social that "India and the US were continuing negotiations to address the trade barriers”. He expressed eagerness to speak with his "very good friend" Prime Minister Modi in the coming weeks, describing the bilateral ties as a "very special relationship" and assuring there was "nothing to worry about”.

Prime Minister Modi responded promptly on X, reinforcing the partnership's potential. “India and the US are close friends and natural partners…. Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump," he wrote.

On September 2, during the Annual Global Investor Conference-2025 in Mumbai, Goyal had acknowledged “a little bit of geopolitical issues” impacting the talks but remained hopeful for a resolution by November.

The India-US bilateral trade agreement was announced in February this year with an objective to increase bilateral trade between the two countries to $500 billion by 2030. The negotiations for the trade pact commenced in March and so far, five rounds of talks have been completed. The sixth round, scheduled for August 25 to 29, was postponed due to the strained trade ties after Trump imposed 50 per cent tariffs. The Indian government has termed the tariffs as "unfair, unjustified and unreasonable".