US, India ‘very, very close’ to trade deal, says Rubio

New Delhi: The US and India are “very, very close” to a trade agreement, with only a small number of items yet to be decided upon, US secretary of state Marco Rubio said on Tuesday, exuding optimism that the pact would be in place very soon.

“We’re very, very close. I would say we’re about as close as you can be without having executed the agreement," Rubio told the press in Mumbai. "I think there’s a small number of items to wrap up, so I think that will happen shortly – we’re hoping; it should.”

“Obviously the state department doesn’t negotiate trade agreements, but we are very much involved in what’s happening,” he said.

Rubio described India as an important commercial and business partner of the US, referring to bilateral defence cooperation and India’s membership of the Quad, a strategic partnership between India, the US, Japan and Australia, focusing on security, technology and stability in the Indo‑Pacific.

“This is the most populous country in the world; it’s the largest democracy in the world. It’s an important commercial partner and business partner of the United States. We also do a lot of defence cooperation. They’re a key member of the Quad. They’re a strong strategic partner,” he said.

In FY26, India's exports to the US grew marginally to $87.31 billion from $86.51 billion a year ago, while imports surged by 17.2% to $53.45 billion from $45.62 billion in FY25. Overall bilateral trade rose 6.5% to $140.76 billion in FY26 from $132.2 billion. India had a trade surplus of $33.9 billion in FY26, down from $40.9 billion in FY25.

Rubio said trade was one of two subjects that featured in his conversations with counterparts around the world, the other being demand for air interceptors.

The top US official's visit to India is scheduled to run until 22 October, according to the external affairs ministry. His itinerary includes engagements in Mumbai and a visit to Jamnagar in Gujarat on Wednesday, where he is slated to discuss energy cooperation with entities including Reliance Industries Ltd that operates the world's largest single-site oil refining complex in Jamnagar.

Energy cooperation

In Mumbai, Rubio spoke about India’s refining capabilities and the potential role of Venezuelan crude oil, and said he would discuss the issue with Reliance in Jamnagar on Wednesday.

“They can, and we’ll talk about that tomorrow with Reliance... They have the capability to refine heavy crude. They’ve done so in the past, and I think as more and more Venezuelan oil comes online, it’s something they can do,” Rubio said.

“… India is a refining superpower, and they have the ability to do that. They have companies that know how to do that,” he added. Indian companies had oil concessions in Venezuela and could produce more themselves, he said.

“I’m not claiming to you that Venezuela alone can fill the hole that could be caused by some of the things that are happening around the world, but I think over time it most certainly can. And in the short term, it can somewhat provide relief,” he said alluding to the energy shortages due to disruptions caused by the ongoing West Asia war.

Rubio said sanctions could pose impediments that would need to be addressed.

Rubio said India had expressed a desire to diversify its energy portfolio, and that the major importing nation had made progress in this regard.

“I think what India has expressed repeatedly is their desire to diversify their energy portfolio, which is a smart thing to do. Obviously, it’s not easy to do that from one day to the next. So, I think they’ve made substantial progress in that regard, and we’re happy to see that,” he said. “But in the end, it’s not just about Russian oil, it’s about their desire to diversify.”

About the Author

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.