Archive · 1 Oct 2026
India-US Trade Ties Unsettled by Graham Bill as Talks Continue
India and the United States are still trying to settle their trade relationship.
A new US law could allow very high tariffs on countries that buy oil from Russia.
India buys Russian oil, so the law could affect India.
India's Finance Ministry said this creates uncertainty for trade and investment.
It also warned that India's currency and other financial assets could face short-term pressure.
Countries are competing strongly for new factories and foreign investment.
The ministry still expects India's foreign investment performance to improve this financial year.
Meanwhile, Indian and US officials met to discuss a smaller interim trade agreement.
They said they want to reach a deal that benefits both countries.
India's Finance Ministry said trade relations with the United States remain uncertain after the Graham Bill became law.
The legislation allows the US administration to impose tariffs of up to 100% on countries buying Russian crude.
India's continued purchases of Russian oil give the legislation particular significance for its economy.
Finance officials warned that geopolitical uncertainty could pressure India's financial assets, including the rupee, and complicate efforts to attract investment.
Piyush Goyal and US Trade Representative Jamieson Greer discussed an interim India-US trade agreement and described efforts toward a mutually beneficial deal as productive.
- Who
- India's Finance Ministry, Commerce and Industry Minister Piyush Goyal, and US Trade Representative Jamieson Greer.
- What
- India-US trade relations remain uncertain after the Graham Bill's passage and approval, while both countries continue negotiating an interim trade agreement.
- When
- The assessment appeared in the Finance Ministry's September Monthly Economic Review; Goyal and Greer met during the G20 Trade Ministers' Meeting.
- Where
- Goyal and Greer met in Milwaukee on the sidelines of the G20 Trade Ministers' Meeting.
- Why
- The uncertainty is linked to US legislation targeting countries that purchase Russian oil, including India, which continues buying Russian crude.
Risk Concerns
Negotiating Optimism
Effect of the Graham legislation
Risk Concerns
India's Finance Ministry says the legislation adds uncertainty to trade, investment, and financial markets because India buys Russian crude.
Negotiating Optimism
Indian and US trade officials continue working toward an interim agreement, suggesting negotiations are proceeding despite the uncertainty.
India's investment prospects
Risk Concerns
The ministry warns that geopolitical pressures and competition from developed economies could make it harder for India to attract foreign capital.
Negotiating Optimism
The ministry nevertheless expects India's net foreign direct investment to perform better during the current financial year than during the previous year.
- Legislation
- The Lindsey O Graham Sanctioning Russia and Iran Act of 2026.
- Potential tariff
- Up to 100% on countries buying Russian crude.
- India's exposure
- India continues to purchase Russian crude.
- Investment outlook
- The Finance Ministry expects net foreign direct investment into India to perform better this financial year than in the previous year.
- Financial risks
- Indian financial assets, including the rupee, could face short-term pressure.
- Trade negotiations
- India and the United States are working toward an interim agreement under a proposed bilateral trade agreement.