Archive · 18 Nov 2025
India-US Trade Deal Progress, LPG Import Deal Signed
India and the United States are close to finishing the first part of a trade deal.
This first part is mainly about the taxes, called tariffs, that each country puts on goods from the other.
The US put a big 50% tariff on some Indian goods, partly because India buys oil from Russia.
India wants these tariffs removed.
The US says they will remove the oil-related tariffs if India stops buying oil from Russia, but India doesn't want to promise that.
India has already started buying less Russian oil and has a deal to buy cooking gas (LPG) from the US.
Some Indian exports to the US have gone down because of the tariffs, but the US has also removed some tariffs on Indian farm products like spices and tea, which could help Indian farmers.
This first part of the trade deal focuses on these tariff issues, and later parts will cover other trade topics.
India and the US are nearing completion of the first tranche of their bilateral trade agreement, focusing on reciprocal tariffs and market access.
The US has lifted tariffs on certain Indian agricultural goods, potentially boosting exports, while India has signed a deal to import US LPG.
India seeks the removal of the entire 50% US tariff, including the 25% penalty linked to Russian oil purchases, while the US suggests lowering the oil-related tariff if India stops purchasing oil from Russia.
India has reduced oil purchases from Russia and signed a contract to import US LPG, aiming to balance trade and address US concerns.
India's exports to the US fell in October, but the US LPG import deal could help reset trade dynamics and expand bilateral trade.
- Who
- India and the United States
- What
- Nearing completion of the first tranche of a bilateral trade agreement, focusing on reciprocal tariffs and market access; signed a deal for US LPG imports
- When
- Published on November 17, 2025; first tranche expected soon; LPG deal signed in October 2025
- Where
- Between India and the United States
- Why
- To address tariffs, balance trade, and improve market access for goods between the two countries; to diversify India's imports and correct trade surplus
United States Position
India's Position
Tariffs on Indian Goods
United States Position
The US insists that penal tariffs related to India's purchase of Russian oil will only be lowered when India stops buying oil from Russia. US also expects reciprocal tariffs to be addressed.
India's Position
India wants the entire 50% US tariffs (25% reciprocal and 25% penalty for Russian oil) addressed in the first tranche, arguing that the deal would be meaningless otherwise and Indian goods would remain uncompetitive.
Russian Oil Purchases
United States Position
The US alleges that oil earnings from Russia finance its war on Ukraine and has imposed unilateral tariffs on India for purchasing Russian oil.
India's Position
India argues it's unfair to single them out as many countries purchase Russian oil and they are not violating any restrictions. India does not want to give assurances of halting oil purchases from Russia but has reduced its purchases.
- BTA Status
- First tranche nearing completion
- Tariff Focus
- Addressing reciprocal and penal tariffs on Indian goods, and market access for US goods
- US Tariffs on India
- 50% (25% reciprocal, 25% penalty for Russian oil purchases)
- LPG Import Deal
- 1-year contract for 2.2 million tonnes from US in 2026
- US Tariff Relief on Agriculture
- Lifted on spices, processed food, tea & coffee, and other goods (valued at $1 billion in exports)
- Indian Agricultural Exports to US
- Contracted for two months (September-October) due to tariffs; $6.3 billion in October 2025, up 14.5% from September
- Indian LPG Imports from US
- First such deal, aiming to diversify imports and balance trade
Sources
Indian PSUs To Source LPG From US Gulf Coast In First Structured Deal, Eye 10% Of Annual Imports
India Signs First-Ever LPG Import Deal With US: Hardeep Puri
Union Minister Hardeep Puri Announces India’s First-Ever US LPG Deal: 2.2 MTPA Import to Boost Energy Security & Lower Household Costs
Indian oil companies sign first-ever LPG deal with US for 10% annual imports, announces Hardeep Singh Puri
India signs ‘historic’ LPG deal with the US: Hardeep Puri
Indian PSUs sign one-year deal to import 2.2 MTPA LPG from US Gulf Coast
In a ‘historic first’ India to buy 10% of its oil import from US: Oil Minister Hardeep Puri
‘A historic first’: India to source 10% of LPG imports from US in 2026
India signs first-ever long-term LPG deal with US, securing nearly 10% of annual needs
India inks landmark LPG deal with US to meet 10% import needs, announces Hardeep Singh Puri
Indian Oil takes major stride in boosting India’s upstream sector development
IOC Boosts India’s Upstream Energy Journey With Commencement Of First Domestic Production From Jyoti-1 Well In Gujarat
Indian PSUs to buy LPG for 1-year from US as reliance on Russia reduces
India exports first-ever jet fuel shipment to US West Coast amid Chevron supply disruption
India inks ‘historic first’ deal to source around 10% of its LPG imports from US in 2026
India-US ink major LPG import deal; to procure 2.2 mt per year in 2026
Bangladesh’s ousted PM Hasina convicted in students crackdown case
500% tariffs on Russia trade partners? Trump reveals new Republican bill – What happens to India?
Indian oil companies enter into agreement to import LPG from US
India concludes first-ever major LPG import deal with United States
India signs deal to import 2.2 million tonnes of LPG from US
Hardeep Puri holds discussions to strengthen India-Japan cooperation in energy
India Signs First Ever Deal to Import 2.2 Million Tonnes of LPG From US
India-US likely to launch phased trade deal tackling tariffs first, broader issues later, official says
India–US trade talks underway, says Commerce Ministry with reciprocal tariffs, market access on the table
Hardeep Puri holds talks on bolstering India-Japan energy ties
First tranche of US-India trade deal 'nears closure'
India says reciprocal tariff deal with US is near closure as BTA talks advance
First phase of India-US trade deal nearing closure; to address tariff issues: Official
'Near Closure': Commerce Secretary Signals Breakthrough in First Tranche of US–India Trade Deal
OMCs clinch large LNG import deal with US for 2026
India-US trade deal likely to be signed soon: Commerce Secretary
India, US near closure on first trade pact package - Economy News
First tranche of India-US trade deal to focus mostly on reciprocal tariffs
US tariff relief may boost India’s $1 bn farm exports - Economy News
India-US Bilateral Trade Agreement Is Nearing Closure
India inks first major LPG import deal with US
Mint Quick Edit | An LPG deal could pacify Trump and help reset India-US trade dynamics
