US President Donald Trump has said he discussed "trade" with Prime Minister Narendra Modi when the two leaders spoke over the phone on Diwali and appeared more accommodating on India's purchase of Russian oil.
The two countries have been negotiating a trade deal, and India is also hoping for a reduction in Trump's steep tariffs in the bargain.
“We talked about a lot of things, but mostly the world of trade,” Trump said while addressing Indo-American community members at the Oval Office after lighting a lamp to mark Diwali at the White House.
Modi acknowledged the phone call later, without giving out specifics. “Thank you, President Trump, for your phone call and warm Diwali greetings. On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” he posted on X.
Speaking later to journalists, Trump referred to his phone conversation with Modi, iterating his claim that India would cut down on the purchase of Russian oil but appearing less belligerent on his push for a halt on the trade in Russian crude, which he believes is fuelling President Vladimir Putin's war with Ukraine.
“I spoke to Prime Minister Modi today, as I mentioned before, and we just have a very good relationship.... He is not going to buy much oil from Russia. He wants to see the war end as much as I do. He wants to see the war end between Russia and Ukraine," Trump said.
"And as you know, they're not going to be buying too much oil, so they've cut it way back, and they're continuing to cut it way back," he claimed.
Trump’s comment on Tuesday suggests that India may not have to completely stop buying Russian oil.
Any reduction in the amount of Russian oil purchased by India will reflect only after mid-December.
Data collected from market intelligence firm Kpler show that India’s crude imports from Russia in October were around 1.8 million barrels per day, up 250,000 BPD month-on-month and 50,000 BPD year-on-year as of October 16, the day Trump first claimed that India would stop buying Russian oil.
Russian crude, which accounts for 30-35 per cent of India’s imports, is $2-3 cheaper per barrel than other crudes. Reliance, which is the largest importer among Indian refiners of the Russian variety, has already picked up a parcel of West Asian crude and is looking to step up its procurement from the region, Bloomberg reported on Tuesday.
Trump's phone call with Modi comes days before the Asean summit, which the US President is expected to attend. If Modi decides to join the summit in Malaysia, the two leaders are likely to meet face-to-face for the first time after February this year.
Mint reported on Wednesday that India and the US are nearing a deal that would reduce US tariffs on Indian goods to 15-16 per cent and that India would scale back Russian oil purchases. India will also buy more ethanol, dairy inputs and poultry feed from the US, the report noted.
Last week, Business Standard had reported that the US is not willing to offer any relaxation in the reciprocal tariff of 25 per cent. Delhi, according to the report, wants this rate to be lower than what the US has levied on India's Asian peers.
