India, US bureaucrats work to ease nerves amid face-off

Hindustan Times

2 days ago

Washington : Diplomats in New Delhi and Washington are battling behind the scenes to stabilise the India-US partnership even as political tensions have escalated dramatically following President Donald Trump's decision to impose a 50% tariff rate on Indian goods. US President Donald Trump with Prime Minister Narendra Modi at the White House in Washington, DC.(Reuters File)
According to persons closely involved with the relationship, governmental bureaucracies in both capitals have quietly continued functional cooperation on energy, trade and connectivity despite the public confrontation over India's Russian oil purchases.
The diplomatic push comes after Trump imposed an additional 25% tariff on Wednesday—bringing the total levy to 50% effective August 28—while India hit back, calling the measures 'unfair, unjustified and unreasonable' and vowing to protect its national interests.
As HT reported, National Security Council director for South Asia Ricky Gill visited India this week for a summit on the delayed India Middle East Europe Economic Corridor (IMEC), underscoring continued strategic cooperation despite trade tensions.
Gill — Trump's top adviser for South Asia at the White House — met with senior officials from India as well as key European nations during his New Delhi visit. A veteran of the first Trump administration, where he handled Russia and European energy issues, Gill's engagement signals White House recognition of the partnership's strategic importance.
However, the diplomatic effort comes against the backdrop of key policy positions related to India in the Trump administration remaining unfilled. The state department currently lacks an assistant secretary for South Asia, while Washington has not nominated an Ambassador to India.
Despite political tensions, plans for senior delegation visits on crucial priority areas continue. The US Department of Energy plans to send a high-level delegation to India in coming months, while a key Indian energy delegation is expected to visit Washington at month's end.
Amid the outreach, India is ramping up purchases of both crude oil and liquified natural gas from the US, with imports of US crude jumping 114% to $3.7 billion in the first quarter of FY 2025-26 from $1.73 billion in the same period the previous year.
India also increased US crude oil imports by 51% in the first six months of 2025 compared to the same period last year, highlighting New Delhi's efforts to diversify energy sources whilst maintaining Russian purchases for price competitiveness.
The energy cooperation contrasts sharply with Trump's tariff justification, which cites India's Russian oil imports as 'fuelling the war machine' in Ukraine.
Cooperation with various other arms of the US government—including treasury and state department—continues despite public tensions, according to the people cited above.
India has mounted a robust defence of its energy policies, with the ministry of external affairs pointing to continued Western trade with Russia to counter American criticism.
'Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment,' the ministry said in a statement earlier in the week.
'Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals.'
The uncertainty, however, is palpable and experts believe it remains to be seen how crucial strategic collaboration in several areas is impacted.
'Commentators sometimes complain about bureaucratic dialogues. But I think the infrastructure built around the India-US relationship has brought benefits. Last I checked, there were around three dozen diplomatic dialogues between the US and India. These help keep channels of communication open, both in good times and challenging times,' said Basant Sanghera, managing principal at the Asia Group.