India and the US are close to concluding a long-delayed trade agreement that could significantly reduce American tariffs on Indian goods, according to a report that cited three unnamed sources familiar with the talks.

The agreement, expected to be finalised at the Asean (Association for South East Asian Nations) Summit later this month, would lower US tariffs on Indian imports to around 15 per cent –16 per cent from the current 50 per cent, according to the Mint report.

The deal — focused largely on energy and agriculture — could also involve India gradually cutting back its purchases of Russian crude oil, the publication said.

The Union Ministry of Commerce and Industry and the White House did not immediately respond to Reuters’ requests for comment on the report.

The development comes after US President Donald Trump spoke with Prime Minister Narendra Modi on Tuesday, with trade and energy topping their agenda.

“We talked about a lot of things, but mostly the world of trade,” Trump told reporters in the Oval Office.

He added that Modi had assured him India would curb oil imports from Russia.

“He’s not going to buy much oil from Russia. He wants to see that war end as much as I do,” Trump said.

Trump has repeatedly criticised India for continuing to buy discounted Russian crude and has imposed tariffs on Indian exports in an effort to pressure New Delhi to scale down its purchases. The US President has made clear that the trade deal could hinge on India’s willingness to taper off Russian oil imports.

India and China are currently the top buyers of Russian seaborne crude. Despite US pressure, India’s crude imports from Russia rose to 1.8 million barrels per day in October, up by 250,000 barrels month-on-month, according to industry estimates. Officials in New Delhi maintain that buying discounted Russian oil benefits Indian consumers and helps control inflation.

On social media, Modi confirmed his conversation with Trump but did not elaborate on the details.

“Thank you, President Trump, for your phone call and warm Diwali greetings,” Modi wrote on X, formerly Twitter. “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.”

As part of the ongoing talks, India may also permit greater imports of non-genetically modified US corn and soymeal, Mint reported. The proposed deal could include a mechanism to periodically review tariffs and market access, the report added.