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US Secretary of State Marco Rubio stated that India's ongoing purchases of Russian oil are 'most certainly a point of irritation' in its relationship with the United States. Speaking to mediapersons, Rubio explained that the US President is frustrated with India for continuing to buy oil from Russia, which is helping to sustain Moscow's war efforts in Ukraine, despite having many other vendors available.

Rubio acknowledged India's "huge energy needs" and the fact that it buys Russian oil because it is "sanctioned and cheap," often being sold below the global price. However, he emphasised that this trade "is helping to sustain the Russian war effort," making it a source of tension with Washington. He also noted that this is not the only point of contention, as the two nations have many areas of cooperation.

The trade relationship between the two countries has also been strained by India's resistance to opening up its agricultural and dairy sectors. This has been a major point of disagreement that has prevented a bilateral trade deal from being finalised. The US has been pushing for greater access to India's market for its agricultural products, including genetically modified (GM) crops, dairy, corn, soybeans, apples, almonds, and ethanol, while insisting on tariff reductions in these sensitive areas.

 

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New Delhi has consistently argued that allowing subsidised and cheaper US farm goods into the country would negatively impact the income of millions of small farmers. India has informed the US that reducing tariffs on dairy, rice, wheat, and GM crops is not feasible at this time, as such a move could harm over 700 million rural citizens, including approximately 80 million small dairy farmers.

In addition to agriculture and dairy, the US is also seeking broader access to the Indian market for a wide range of other products, such as automobiles, medical devices, pharmaceuticals, and alcoholic beverages. The US has also urged India to reduce non-tariff barriers, simplify customs regulations, and relax laws concerning data storage, patents, and digital trade.

 

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