US Secretary of State Marco Rubio is set to arrive in India on Tuesday, only days after President Donald Trump held off on tariffs on American imports from the country. Both governments are working to finalise a trade agreement, and Washington’s concern over India’s energy purchases from Russia is also expected to come up.
The two-day trip takes in Mumbai and Jamnagar in western India. Rubio is due to meet government and business figures, including Foreign Minister S. Jaishankar and billionaire Mukesh Ambani, chairman of Reliance Industries. The company runs the world’s largest refining complex at Jamnagar.
Trade deal could be signed during visit
Rubio and other officials have recently said a comprehensive trade agreement is nearly complete. That raises the possibility it could be signed while the secretary is in India.
Trump removed one possible obstacle last Friday by waiving tariffs that could have penalised New Delhi over its heavy purchases of Russian crude. Rubio said the effort to finalise the trade deal was one factor behind that decision.
Tariff waiver tied to Russian oil law
Legislation Trump signed in September allows the administration to impose tariffs of up to 100% on the five largest buyers of Russian oil. India ranks second on that list, behind China.
Trump’s decision to waive all substantive provisions of the law has drawn criticism from both Democrats and Republicans. Lawmakers from both parties had urged him to increase economic pressure on Moscow over its war with Ukraine.
Rubio said India had been moving its energy imports away from Russian crude, yet it still buys millions of barrels of Russian oil every day. He added that the administration is entering a 60-day review period to decide which new tariffs, if any, to introduce.
Rubio said on Sunday: “You’ve got countries like India, for example, that have voluntarily diversified their energy portfolio, but are still getting a substantial amount of energy from Russia because it’s hard to pivot from one day to the next.” He added: “But they’re also an important ally and partner of the United States.”
Mixed signals on Russian energy purchases
The Trump administration has previously pressed India to reduce its Russian oil imports. However, Washington recently agreed a deal with Russia to import diesel, aimed at lowering domestic fuel prices before the midterm elections. That makes it unclear how far reducing Russian energy purchases remains a foreign policy priority.
Speaking to reporters on Monday, when asked about India’s Russian oil purchases, Rubio said: “Every country has a complex set of factors that they have to take into account.” He continued: “Geography is real. For some countries, it’s very difficult to acquire energy from alternative sources.”
India imports more than 85% of its crude oil requirements, fuel for an economy that is growing quickly. Rubio is due to fly into Mumbai from Samarkand, Uzbekistan, where he had been meeting Central Asian political and business leaders.
