Marco Rubio in India: Can US business diplomacy ease Trump tensions over tariffs, Russian oil and bring trade deal closer? | Today’s news
US Secretary of State Marco Rubio on Tuesday expressed optimism about an India-US trade deal, saying the two sides were “very, very close” to finalizing the deal, while signaling Washington’s interest in expanding energy cooperation with Reliance Industries, including refining Venezuelan oil.
Rubio, who arrived in Mumbai on October 20 for a three-day visit, described India as a global “refining superpower” and said Washington would discuss opportunities for Reliance to process more Venezuelan oil at its Indian refineries.
He also hinted that the Indian conglomerate might explore oil production in Venezuela.
The visit comes at a sensitive time in Indo-US relations, with trade disputes and tariff tensions lingering even as Delhi continues to buy Russian oil to diversify its energy supply and ensure energy security.
However, US President Donald Trump’s recent decision to waive potential sanctions-related tariffs on major buyers of Russian oil could remove one major obstacle to a bilateral trade deal, according to a Reuters report.
In this context, Rubio’s engagements with External Affairs Minister S Jaishankar in Mumbai and Reliance Industries Chairman Mukesh Ambani in Jamnagar underscore the importance Washington attaches to trade and energy diplomacy alongside its broader strategic partnership with India.
India-US trade deal: ‘Very, very close’, Rubio says
Optimistically, Rubio noted the long-term trade deal between India and the US, saying that negotiations are nearing completion and only a few issues remain to be resolved.
“We are very, very close. I would say we are as close as you can get without making a deal,” Rubio told reporters in Mumbai on Tuesday.
Following the meeting between Jaishankar and Rubio, the Ministry of External Affairs (MEA) said the two sides discussed a wide range of issues, including trade, defence, technology and energy security.
“They welcomed the progress made in the India-US Bilateral Trade Agreement (BTA) negotiations and reaffirmed their commitment to work towards its early conclusion,” the MEA said in a statement.
According to the ministry, the ministers also exchanged views on regional and global developments.
Why is Rubio visiting Mumbai and Jamnagar instead of Delhi?
One of the most striking aspects of Rubio’s itinerary is the emphasis on India’s financial and industrial centers rather than New Delhi, where high-level diplomatic engagements with visiting US officials would normally be expected.
Mumbai provides access to corporate leaders and financial institutions, while Jamnagar in Gujarat is home to two Reliance Industries refineries, which together form the world’s largest single-site refining complex.
Read also | India-US trade deal ‘very close’ to completion, says Marco Rubio
US Ambassador to India Sergio Gor said the visit would have a stronger business focus, with Rubio scheduled to meet government officials in Mumbai and business representatives in Jamnagar.
Suresh K Goel, a former Indian diplomat, said the choice of venues raised questions about the nature of the visit and the agenda behind the engaged couple.
“If the Ministry of External Affairs prepared the agenda, I found that this meeting was not scheduled earlier in Delhi and that he was going to Mumbai or Jamnagar. It is clear that there were no official talks or anything on the agenda of the meeting,” Goel told LiveMint.
Why is Reliance Industries important to America’s energy agenda?
Rubio’s planned collaboration with Reliance highlights the role that Indian refining capacity could play in Washington’s bid to expand markets for Venezuelan oil.
The US secretary of state said Washington would discuss supporting Reliance to refine more Venezuelan oil at its Indian facilities and possibly explore oil production options in Venezuela.
Reliance operates a large refinery complex at Jamnagar, which gives it the capacity to process a wide range of raw materials. Its role could therefore be significant in any effort to expand the flow of Venezuelan oil to India.
For Washington, the discussions offer a potential trade route to strengthen energy ties with India.
Rubio’s visit is expected to include a meeting with Reliance chairman Mukesh Ambani, bringing one of India’s largest corporate groups into discussions that go beyond conventional government-to-government diplomacy.
Russian oil, Trump’s tariff threat and the path to a trade deal
The Trump administration has authorized the possibility of imposing tariffs of up to 100% on major importers of Russian oil, a measure that could affect India, the world’s second largest buyer of Russian oil after China.
But Trump recently waived potential tariffs targeting major buyers of Russian oil, removing one potential stumbling block in trade talks with Delhi, according to a Reuters report.
The move also drew criticism from US lawmakers who say Washington has not been tough enough on Moscow.
Why strategic partnerships still matter
Despite tensions over trade and Russian oil, Goel said India remains an important partner for the United States because of its economic potential, democratic institutions and cooperation across many strategic sectors.
Goel warned against letting trade disputes or differences in diplomatic approach overshadow the broader relationship.
“The relationship between India and the US is very, very important in every way. And so the government, rather than becoming part of this type of temperament or trade effect, has to be mature in our dealings and try to see how we can really lead the relationship,” Goel told LiveMint.
He also emphasized the importance of India as a democratic and economic partner for Washington in Asia.
“India continues to be important to the US as an economic and democratic partner. After all, if you look at Asia, who is the next democracy to compare in terms of relations?” Goel said.
