India and the United States announced what was described as a landmark trade agreement on February 2, with US President Donald Trump claiming that tariffs on Indian goods would be slashed from 50 per cent to 18 per cent and that New Delhi had agreed to halt purchases of Russian oil.
However, several critical aspects of the arrangement remain unclear, prompting analysts, trade experts and opposition leaders to flag unanswered questions about the deal’s scope, implementation and long-term implications.
Trump was first to announce India-US trade deal
Trump was the first to publicly announce the India-US interim trade agreement, hours before New Delhi issued a brief and formal confirmation. Prime Minister Narendra Modi later welcomed the deal in a social media post, but the Indian government refrained from releasing detailed information or a comprehensive statement outlining its terms.
No clarity on Russian oil purchase
The lack of clarity has since drawn sharp criticism from opposition parties, which have accused the government of misleading the public by withholding key facts and figures related to the agreement. On Saturday, both sides released a joint statement, with the Trump administration adopting a notably stern tone, particularly warning India against continuing purchases of Russian oil. The statement also underscored that Washington would closely monitor India-Russia oil trade.
'Ask MEA': Goyal goes in circle
Amid the growing criticism, Union Commerce and Industry Minister Piyush Goyal appeared on multiple media platforms to reiterate India’s official position. However, he played down Trump’s warning on Russian oil, an issue that has reportedly been central to the negotiations. Since the Russia-Ukraine war began, India has faced sustained international criticism for importing Russian crude, with detractors arguing that such purchases indirectly finance Moscow's war effort.
India, however, has consistently maintained a neutral geopolitical stance, justifying its oil imports by citing discounted prices and national interest. "We have taken decisions in the interest of 1.4 billion people," New Delhi has repeatedly said.
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"Not may mandate"
During an interview with Republic TV's Arnab Goswami, Goyal appeared evasive when pressed on whether India had stopped importing Russian oil following Trump’s remarks. "Not my mandate, ask MEA. This is something the Ministry of External Affairs has already clarified," he said, asserting that the issue falls under geopolitics rather than trade. Critics, however, argue that major trade negotiations inevitably carry geopolitical implications.
Goyal repeated the same position during an ANI podcast, stating, "This is not something that comes under my forte. I was engaged in a trade deal between the two countries, and the issue of Russian oil was never on the table." He added, "Please ask the MEA on this topic.
When questioned about reports suggesting a binding 10-year commitment within the deal, Goyal again distanced himself, saying, "This is not in my area of discussion. Please ask the Ministry of Defence."
MEA says 'ask Piyush Goyal'
Last week, External Affairs Ministry spokesperson Randhir Jaiswal reiterated India’s broader energy policy, stating, “Diversifying our energy sourcing, in keeping with objective market conditions and evolving international dynamics, remains central to our strategy,” underscoring New Delhi’s focus on ensuring energy security for the world’s most populous nation. When EAM S Jaishankar was asked during his last week visit to US, he said, "Ask Commerce Ministry on Russian oil".
China has once again become the largest buyer of Moscow's oil, as its purchases grow while deliveries to India fall to their lowest level in over three years, Bloomberg reported. Last month, Russian oil deliveries to Indian ports continued to fall, decreasing to approximately 1.12 million barrels per day from 1.2 million in December, making January's import figure the lowest since November 2022.