India denies Reuters claim over US trade deal delay

The news agency reported that New Delhi could delay signing the pact after a new tariff probe by the Trump administration

India has rejected claims by Reuters that it is holding back bilateral engagement or delaying a trade deal with the US, saying talks between the two countries are continuing toward a “mutually beneficial agreement.”

The news agency earlier claimed, citing sources, that New Delhi would postpone signing a trade deal with Washington by several months.

Commenting on Friday, the Indian Commerce Ministry said: “We have noted a media report regarding ongoing trade talks with US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement.”

The supposed delay comes amid investigations by the Donald Trump administration into what it calls excessive industrial capacity among trading partners such as India, according to the Reuters report.

India and the US announced an interim trade deal last month, after months of negotiations following a steep 50% tariff imposed by Washington on the South Asian nation in August 2025.

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Washington reduced India’s tariff burden to 18% from the earlier 50%, which was the highest for any country in Asia. Half of the tariff was for New Delhi’s imports of Russian oil.

The US said that as a part of the deal, India would stop buying oil from Russia, a claim that New Delhi has not confirmed. 

Trade talks between the countries stalled last month after the US Supreme Court struck down Trump’s tariffs on imports from various countries.

Earlier this month, the US granted India a 30-day waiver to purchase oil from Russia, aimed at ensuring stability in the global oil market following the US-Israeli attack on Iran.

India has stated that it does not need US permission to buy Russian oil.

“In the national interest, India purchases oil from wherever the most competitive and affordable prices are available,” the Indian government said in a statement last week.  

India signed a trade pact with the European Union this year, and with the UK, Oman, and New Zealand in 2025.