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India pledges to stop Russian oil imports for US tariff relief: Piyush Goyal statement and trade deal
India agrees to halt Russian crude oil imports in exchange for the US lifting extra 25% tariffs on Indian goods, as part of a broader trade framework announced after talks between PM Modi and President Trump. Commerce Minister Piyush Goyal highlighted benefits for Indian exporters.
Why It Matters
The deal shifts India's energy import strategy amid geopolitical tensions, boosts bilateral trade to $500 billion over five years, and opens the US market for Indian MSMEs, farmers, and job creation.
Timeline
5 Events
US Trade Representative statement
February 7, 2026
US Trade Representative Jamieson Greer describes the agreement as a step toward deeper economic ties, noting India will address non-tariff barriers on US agriculture and receive quotas for auto parts and pharmaceuticals.
Piyush Goyal comments on trade framework
February 7, 2026
Commerce Minister Piyush Goyal states the interim trade pact opens $30 trillion US market for Indian exporters, benefiting MSMEs, farmers, fishermen, and creating jobs for women and youth.
US lifts extra 25% tariffs on Indian goods
February 7, 2026
US issues executive order lifting extra 25% tariffs after India pledges to stop Russian oil imports and increase reliance on US energy; tariffs cut to 18% with zero duties on generics, aircraft parts; conditional on no resumption of Russian crude purchases.
Phone call between PM Modi and President Trump
February 2026
PM Narendra Modi and President Donald Trump hold a phone call leading to a joint statement on a broader trade understanding, including India's plan to purchase $500 billion in US goods over five years.
Context of India-Russia trade surge
2024-25 fiscal year
India-Russia bilateral trade hits record $68.72 billion, up five-fold from $13.1 billion in 2021-22, driven largely by discounted Russian oil imports amid global sanctions.