India and the United States remain committed to advancing their bilateral trade agreement despite proposed US legislation that could impose tariffs of up to 100 per cent on countries that are among the largest buyers of Russian oil and gas, Commerce Secretary Rajesh Agrawal said on Thursday.

Agrawal played down concerns over the proposed legislation, describing it as part of the US domestic legislative process while emphasising that trade negotiations between New Delhi and Washington continue.

Trade Talks Remain on Track

Asked about the potential impact of the proposed Russia-related tariffs on India, Agrawal declined to comment directly on the legislation.

He said the matter was currently part of the US legislative process and should be viewed in that context.

At the same time, the Commerce Secretary stressed that India remains engaged with the US administration on the trade agreement and that communication between the two sides continues regularly.

According to Agrawal, both countries remain committed to moving ahead with the agreement.

US Russia Tariff Bill

The comments come days after the US Senate passed a Russia sanctions bill that could give President Donald Trump the authority to impose tariffs of up to 100 per cent on countries that rank among the five largest purchasers of Russian oil and gas.

The legislation is yet to clear the US House of Representatives, meaning it has not completed the American legislative process.

The proposed measure has attracted attention in India because Russia remains an important source of crude oil for Indian refiners.

India-US BTA Negotiations

India and the US have been negotiating a Bilateral Trade Agreement (BTA) aimed at expanding market access and strengthening economic ties between the two countries.

Negotiations have focused on several areas, including market access, digital trade, supply chain resilience and the reduction of non-tariff barriers.

Strategic sectors have also been part of the discussions as both countries seek to deepen their economic relationship.

During US Trade Representative Ambassador Jamieson Greer's visit to New Delhi from June 22 to 24, he held discussions with Commerce and Industry Minister Piyush Goyal on key elements of the proposed agreement.

The two sides had said substantial progress had been made by their negotiating teams.

Interim Trade Framework

India and the US had earlier announced a framework for an interim agreement in February covering reciprocal and mutually beneficial trade.

The framework was presented as part of a broader effort to increase bilateral trade while negotiations on the larger BTA continued.

Both countries have said the eventual agreement should be commercially meaningful and provide benefits for businesses, farmers, workers and consumers.

Russian Oil Adds Fresh Pressure

The proposed US tariff mechanism has introduced another potential complication into the trade negotiations.

India has continued purchasing Russian crude because of factors including competitive pricing and the importance of securing adequate energy supplies.

Washington's proposed measures could therefore create additional pressure on countries maintaining significant trade in Russian energy.

However, Agrawal's remarks indicate that New Delhi does not currently view the proposed legislation as preventing progress on the wider India-US trade negotiations.

Earlier this week, US Presidential Counsellor Peter Navarro said that President Donald Trump and Prime Minister Narendra Modi have a “very good working relationship” and would resolve issues concerning tariffs linked to Russian oil.

Focus Remains on Trade Agreement

For now, India and the US are continuing their engagement on the bilateral trade agreement while the proposed Russia-related legislation moves through the US Congress.

The next stage of the legislative process in Washington, along with the outcome of ongoing trade negotiations, will determine whether the issue creates additional pressure on bilateral economic relations.

Agrawal's comments nevertheless underline New Delhi's position that the broader trade dialogue with Washington remains active and both sides continue to work towards an agreement.