US Commerce Secretary Howard Lutnick on Thursday voiced optimism about finalising a trade deal with India, while urging New Delhi to open its markets and halt purchases of Russian oil.
"We are going to sort out with India, they have to open up their markets and stop buying Russian oil," Lutnick said in an interview to CNBC.
Lutnick's remarks follow US President Donald Trump signalling a thaw in the bilateral chill between India and the US, saying on Wednesday he feels “certain” that there will be "no difficulty" for the two countries to come to a “successful conclusion” in trade talks and he looks forward to speaking with his "very good friend” Prime Minister Narendra Modi in the coming weeks.
Responding to the post, Prime Minister Modi in a post on X on Wednesday expressed confidence that the ongoing negotiations will pave the way for unlocking the limitless potential of the partnership between them.
India and the US are close friends and natural partners, Modi said, adding that both countries are working to conclude the trade discussions at the earliest.
He said, "I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people." Trump shared the Prime Minister's post on his social media platform.
Trump’s comments signalled a significant thaw in bilateral relations as ties between the two countries reeled under possibly the worst phase in over two decades amid tensions over tariffs and Delhi’s purchases of Russian oil.
Lutnick had last week said that despite India owning a strong stance against giving in to US pressure to not buy Russian oil, it will eventually come back to make a trade deal with Washington in a few months.
"So I think, yes, in a month or two months, I think India is going to be at the table and they're going to say they're sorry and they're going to try to make a deal with Donald Trump," he told Bloomberg.
Trump has doubled tariffs on Indian goods to a whopping 50 per cent, including a 25 per cent additional duty for India's purchase of Russian crude oil. India described the US action as "unfair, unjustified and unreasonable".
Defending its purchase of Russian crude oil, India has been maintaining that its energy procurement is driven by national interest and market dynamics.
India turned to purchasing Russian oil sold at a discount after Western countries imposed sanctions on Moscow and shunned its supplies over its invasion of Ukraine in February 2022.
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