Is Russian Oil the Only Sticking Point In India US Trade Deal ? Here's What Troubles America More

India's continued purchase of Russian oil is a major point of contention in its growing trade relationship with the United States. However, there are many other major disagreements that make it difficult for the two countries to come to an agreement on trade. Below, we break down the three big extra stickers:

1. Agriculture: Access to Indian markets

One of the biggest obstacles to agriculture, especially in the United States, is that it is closely controlled by farm and dairy markets. The United States wants India to open areas including corn, wheat, soybeans, dairy, and ethanol for US exporters. However, India fears that the American farm, which has been subsidised in imports, can reduce the livelihood of millions of small and poor Indian farmers, a politically sensitive group that creates an important electoral base.

• In India, the average most favoured nation (MFN) Customs on imported agricultural products is up to 50% for some products, compared to 5% in the United States.

• The previous effort to liberalise Indian agriculture has triggered strong public protests and forced the government to protect the sector from foreign competition.

• Giving better access to America will mean that India may have to provide equal conditions to other business partners, something the government is hesitant to do.

2. Pharmaceuticals: Tariff Threats and IP Issues

India is a major source of cheap, high-quality medicines, and it exports about 47% of the drugs that the world needs. Trump's announcement that he will put a 25% tariff on Indian exports (not necessarily drugs) has caused a lot of worry, and India is shocked that Washington wants to protect its intellectual property (IP).

• Khadi toll rates may interfere with India's pharmacist exports, but experts warned that the shock will be the most difficult for the US health service, which will threaten high drug prices and a deficiency.

• The United States also emphasises patent reforms and strong protection of IP, which can threaten India's ability to deliver cheap generics.

• Both sides are cautious: Indian companies are afraid of political rhetoric and sudden trade movements, while US officials cite "unjust" prices and inadequate IP security.

3. Arms Purchases: India’s Reliance on Russian Weapons

Washington has expressed concern about India's continuous dependence on Russian military hardware. While India historically sourced most of its weapons from Russia for both value and heritage, the United States pushes New Delhi to transfer its defence purchases to the US market.

US officials claim that buying Russian weapons "wrongly rubs Washington" and reduces strategic trust.

• Recent US proposals, such as a possible sale of the F-35, have been changed to make it easier for Russia to buy defence equipment in India.

• The United States has warned about punishment and tied the case to a comprehensive trade agenda, giving it both a strategic and business concern.

India's Russian oil imports are still a high-profile sore point, but the trade talks between the US and India have fallen on many fronts. The use of the agricultural market, drug trafficking policy, and India's weapons relationship with Russia all weigh very high—if a success between the two largest democracies in the world is not high on the possibility of a business agreement.