India-US trade deal: White House says New Delhi to end Russian oil purchases, buy more from US

US President Donald Trump and Indian Prime Minister Narendra Modi - File Photo

India has agreed to end Russian oil purchases and boost US energy imports under a new trade deal, which also lowers US tariffs on Indian goods and includes $500 billion in Indian investments in the US, strengthening bilateral economic and energy ties.

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The White House on Wednesday said India has committed to ending its purchases of Russian crude oil and will instead increase imports of American energy under the newly announced India-US trade agreement. Press Secretary Karoline Leavitt made the remarks to reporters outside the White House, saying the commitments followed direct talks between Donald Trump and Narendra Modi.

“As you all saw yesterday, the President struck another great trade deal with India. He spoke with Prime Minister Modi directly; they share a very good relationship,” she said, highlighting the strength of bilateral ties.

Leavitt said the agreement will benefit both countries by boosting American exports and enhancing India’s access to reliable, diversified energy sources. “India committed to not only no longer purchasing Russian oil but also buying oil from the United States, and perhaps also from Venezuela, which we know will now have a direct benefit on the United States and the American people,” she told reporters.

She also said Prime Minister Modi had pledged significant investments in the United States. “In addition to that, Prime Minister Modi committed to USD 500 billion of investments into the United States, including for transportation, for energy, and for agricultural products as well. This is another great trade deal,” Leavitt added.

Earlier, Trump had announced on social media that Washington and New Delhi had “agreed to a trade deal” that immediately lowered US reciprocal tariffs on Indian goods from 25 percent to 18 percent. In that post, he said Modi agreed to “stop buying Russian Oil” and to buy more from the US and potentially Venezuela, while also moving to reduce tariff and non-tariff barriers. India has not issued any official statement so far on the announcements made by Trump.

Following the announcement, PM Modi said he was delighted that Indian exports would face the reduced tariff rate and thanked the US President. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent,” Modi wrote on X.

While the White House insists the agreement reflects a clear commitment on energy and trade, Indian refiners have suggested that existing commitments to Russian crude deliveries may take time to fully wind down, and existing contracts will be honoured as they expire.

Overall, the White House framing suggests that India is shifting toward deeper engagement with the US energy market and broader trade cooperation, a move that adds strategic depth to New Delhi’s economic ties with Washington.