Two senior diplomats said India indicated late on Friday it could accept a two-year extension of the moratorium, which covers digital downloads and streaming services and is set to expire this month.

The move follows earlier remarks by Commerce Minister Piyush Goyal calling for a “careful reconsideration” of the long-standing arrangement.

Despite the apparent flexibility, gaps between New Delhi and Washington remain significant. The United States has pushed for a permanent extension, with U.S. Trade Representative Jamieson Greer stating Washington is not interested in a temporary renewal.

Diplomatic sources said negotiations were ongoing, with some members exploring a compromise that would extend the moratorium beyond the next ministerial conference, potentially for five to ten years. It remains unclear whether either side would accept such a proposal.

Business groups have warned that failure to extend the moratorium could introduce uncertainty into cross-border digital trade, raising the possibility of new duties on electronic transmissions.For nearly three decades, WTO members have routinely renewed the measure at successive ministerial meetings.

The current debate comes amid wider strains on the global trading system following tariff disputes and disruptions linked to geopolitical tensions affecting shipping, energy prices and supply chains.

The outcome of talks in Yaounde is being closely watched as a gauge of the WTO’s ability to deliver consensus at a time of deep divisions among major economies.

Norwegian Foreign Minister Espen Barth Eide said extending the moratorium for a meaningful period would be significant for some countries and demonstrate that ministers can reach concrete outcomes.

The invitation comes at a delicate moment in India–US relations, with bilateral ties facing pressure over unresolved trade disputes.

Despite growing strategic cooperation in areas such as defense, technology and Indo-Pacific security, negotiations have stalled over tariffs on Indian exports to the United States, which are currently subject to levies of up to 50 percent, among the highest imposed by Washington.

This backdrop adds complexity to India’s consideration of Trump’s peace initiative.

According to the source, it remains unclear whether India will accept the invitation. New Delhi’s foreign ministry has not publicly commented, reflecting the cautious approach India often adopts when balancing diplomatic engagement with major powers against its own strategic autonomy.

India has traditionally supported a two-state solution to the Israel-Palestine conflict while maintaining close ties with Israel and longstanding support for Palestinian rights.

Trump’s “Board of Peace” initiative is envisioned as a multinational platform bringing together governments to explore pathways to conflict resolution, with Gaza positioned as its initial focus.

The US president has reportedly extended invitations to around 60 countries, signaling an attempt to give the initiative global legitimacy.

Among those invited is Pakistan, India’s neighbor and regional rival, which has already indicated it would engage in international efforts aimed at peace and security in Gaza.

For India, participation could offer both opportunities and challenges. On one hand, joining the initiative would allow New Delhi to project itself as a responsible global actor committed to peace-building, aligning with its broader aspirations to play a larger diplomatic role on the world stage.

On the other hand, involvement in a US-led mechanism during a period of trade friction could be seen domestically and internationally as politically sensitive.

India’s relationship with the Gaza conflict has been carefully calibrated. While condemning civilian casualties and calling for humanitarian access, India has also strengthened defense and technological cooperation with Israel over the past decade.

Any formal role in a peace board would require New Delhi to navigate these relationships carefully, ensuring it does not appear to tilt too far toward any single camp.

Analysts note that Trump’s outreach to India may also reflect Washington’s recognition of New Delhi’s growing influence, particularly among developing nations and in forums such as the G20 and the Global South.

India’s experience in peacekeeping missions, conflict mediation, and humanitarian assistance could add credibility to any multilateral peace initiative, even if its actual impact on the ground remains uncertain.

The timing of the invitation is also significant given the broader geopolitical landscape. With conflicts stretching from the Middle East to Eastern Europe and heightened competition among major powers, diplomatic initiatives aimed at de-escalation carry both symbolic and strategic weight.

For the United States, securing participation from countries like India could help counter criticism that its Middle East policies lack broad international backing.

Whether India ultimately joins the Board of Peace may depend on several factors, including clarity on the initiative’s mandate, decision-making structure, and alignment with India’s foreign policy principles.

New Delhi is likely to assess whether participation would offer tangible diplomatic leverage or risk entangling it in initiatives over which it has limited influence.

The invitation nonetheless underscores India’s rising profile in global diplomacy. How New Delhi responds could signal its approach to balancing strategic partnerships with independent foreign policy choices.

The warning comes as talks between the two countries remain unresolved, with Washington signaling growing impatience over India’s continued engagement with Russian energy supplies despite Western sanctions linked to the Ukraine conflict.

Speaking to reporters during recent travel, Trump indicated that the United States has the ability to raise tariffs quickly, suggesting that trade measures could be used as leverage to influence India’s energy sourcing decisions.

India has emerged as one of the largest buyers of discounted Russian oil in recent years, a strategy that has helped it manage inflationary pressures and ensure energy security amid volatile global markets.

However, the U.S. administration views these purchases as indirectly supporting Moscow’s war effort, and senior American lawmakers have echoed calls for tougher action against countries that continue buying Russian crude.

Some Indian exports already face steep duties in the U.S. market, with total tariffs reaching as high as 50 percent on certain goods, partly linked to concerns over Russian oil imports, according to trade analysts.

Financial markets in India reacted cautiously to the latest signals, with technology stocks declining as investors weighed the risk of prolonged trade friction and further delays to a long-anticipated bilateral trade agreement.

U.S. officials have argued that sanctions and tariff threats have already reduced India’s reliance on Russian oil, though Indian refiners continue limited purchases to balance cost considerations and supply stability.

Trade experts warn that India’s careful diplomatic balancing act may no longer be sufficient, as Washington appears to be pushing for clearer commitments rather than incremental adjustments or quiet reductions.

Analysts note that even a complete halt to Russian oil imports may not fully ease U.S. pressure, as trade demands could shift toward market access, digital trade rules, or industrial subsidies.

From India’s perspective, policymakers remain cautious about setting precedents that could constrain strategic autonomy, particularly in energy sourcing and foreign policy decision-making.

At the same time, India is seeking to preserve strong economic ties with the United States, one of its largest export markets, especially for pharmaceuticals, information technology services, and engineering goods.

Despite the tariff challenges, Indian exports to the U.S. have shown resilience in recent months, though overall shipments have fluctuated amid global demand uncertainty and trade policy risks.

To address U.S. concerns, Indian authorities have reportedly increased monitoring of oil import data, including more frequent disclosures of purchases from Russia and alternative suppliers such as the United States.

Diplomatic engagement between New Delhi and Washington has continued at senior levels, with multiple high-level conversations aimed at preventing further escalation while keeping the door open for compromise.

The situation highlights the complex intersection of geopolitics, energy security, and trade policy, where economic decisions are increasingly shaped by strategic alliances and global power shifts.

As both sides weigh their next steps, businesses and investors are bracing for continued uncertainty, with tariff policy emerging as a key variable in the future of U.S.-India economic relations.

Rather than being seen as a political gamble, India’s diversified energy policy reflects a calculated effort to ensure affordability, sustainability, and balance in an uncertain global environment.

As global oil politics grow increasingly complex, India’s balanced approach to energy sourcing showcases both economic pragmatism and global responsibility — positioning the nation as a key player in maintaining stability in volatile markets.

The issue gained global attention after recent trade tensions between the United States and India over energy imports. Yet, India’s policy remains guided by one core principle — protecting domestic consumers while supporting the country’s rapid economic growth.

Officials have consistently stated that energy decisions are based on the best interests of the Indian economy, not external pressures.

India, the world’s third-largest importer of oil, spent over $52 billion on Russian crude last year, accounting for roughly 37% of its total oil imports. This surge was primarily driven by competitive pricing and favorable supply terms.

By purchasing discounted oil, India has been able to stabilize domestic fuel prices, curb inflation, and support its industrial growth, while maintaining a steady supply of energy to meet rising demand.

Energy analysts emphasize that this strategy is neither political nor opportunistic — it’s pragmatic. “Buying discounted oil benefits not just India but the global market by preventing excessive price volatility,” says Partha Mukhopadhyay from the Centre for Policy Research in New Delhi. The logic is simple: if India were to stop purchasing Russian oil, prices could spike globally, affecting both emerging and developed economies.

The savings from discounted oil — estimated at around $9 billion annually — have helped India maintain fiscal discipline and reinvest in renewable energy infrastructure.

Simultaneously, the country continues to strengthen ties with the Gulf nations, the U.S., and African suppliers, ensuring no single dependency dictates its energy future.

India’s energy diversification strategy is built on resilience. Before 2022, its imports were primarily sourced from the Middle East — Iraq, Saudi Arabia, and the UAE.

However, sanctions on Iran and Venezuela forced India to diversify, adding new suppliers such as the U.S., Brazil, and Russia. This adaptability reflects a long-term strategy to balance cost-efficiency with security of supply.

Moreover, India’s vast refining capacity — among the world’s largest — allows it to process a wide variety of crude grades. Many of these refineries are calibrated for medium-to-heavy crude, similar to Russia’s Urals blend.

Replacing these supplies with lighter U.S. shale oil would require significant technical adjustments and increased costs. Hence, the current mix offers operational stability and price consistency.

For global markets, India’s continued participation as a responsible buyer helps moderate demand shocks. As Ajay Srivastava of the Global Trade Research Initiative explains, “India’s role in global energy trade is crucial — it ensures liquidity, keeps prices in check, and supports global economic balance.”

Looking ahead, India remains committed to reducing its carbon footprint while gradually increasing its investment in renewable energy, biofuels, and hydrogen technology. Yet, policymakers recognize that the path to a green transition must remain economically sustainable.

In essence, India’s current energy policy is a model of balanced diplomacy — prioritizing affordability, supply security, and global cooperation.

By keeping consumer interests at the forefront while maintaining open dialogue with both the U.S. and Russia, India continues to demonstrate that responsible pragmatism can coexist with international partnership.

The talks aim to strengthen economic ties, expand energy trade, and address previous tensions related to tariffs and oil imports — marking a positive step toward a more balanced and forward-looking partnership.

According to officials, New Delhi has expressed its willingness to boost imports of U.S. energy and natural gas, aligning with Washington’s efforts to diversify trade relations and reduce global energy dependencies.

This strategic move reflects India’s pragmatic approach to ensuring energy security while fostering strong bilateral ties with key global partners. It also highlights India’s role as a stable and responsible economic power that seeks mutually beneficial outcomes rather than confrontation.

The decision to resume talks comes after a brief suspension in August, when the Trump administration announced tariff increases of up to 50% on certain Indian goods. The tariffs, initially linked to concerns over India’s continued purchases of Russian oil, temporarily slowed discussions. However, both sides have since adopted a more collaborative tone.

President Donald Trump’s recent outreach to Prime Minister Narendra Modi — including a constructive phone call in September — helped restore optimism for a breakthrough.

Sources familiar with the matter said that discussions in recent weeks have been “constructive and forward-looking.” Indian officials, during their visit to Washington last month, emphasized that cooperation in clean energy, trade facilitation, and technology will remain key pillars of the ongoing dialogue. The talks are also expected to pave the way for a broader trade agreement that could significantly expand the scope of bilateral commerce.

Negotiations between the two countries first began in early 2025, with the shared goal of doubling bilateral trade to $500 billion by 2030. So far, five productive rounds of discussions have taken place, with the sixth — initially postponed in August — now expected to be completed soon. The first tranche of the deal could be signed as early as next month, marking a milestone in India-U.S. trade relations.

Analysts say the revival of these discussions demonstrates the resilience and maturity of the partnership between New Delhi and Washington. Despite occasional policy disagreements, both nations recognize the strategic and economic importance of collaboration in areas such as energy, defense, manufacturing, and digital innovation.

The talks are expected to yield long-term benefits, not only for bilateral trade but also for regional and global economic stability.

Energy cooperation remains a central focus. India’s increasing demand for clean and affordable energy aligns with U.S. ambitions to become a leading energy exporter

By expanding imports of American liquefied natural gas (LNG) and other fuels, India can diversify its energy sources and reduce dependence on volatile global markets. In turn, U.S. energy companies will gain greater access to one of the world’s fastest-growing markets.

Beyond trade and energy, the discussions are also expected to explore new avenues in technology transfer, infrastructure development, and digital trade. Both governments are keen to facilitate business opportunities for startups, encourage investment in sustainable industries, and promote policies that support innovation-driven growth.

The positive tone surrounding the upcoming talks reflects a broader commitment to cooperation and dialogue. The willingness of both sides to bridge differences through diplomacy underscores the strength of the India-U.S. relationship — one built on shared democratic values, mutual respect, and economic ambition.

As negotiations progress, observers remain optimistic that the partnership will continue to evolve in a direction that supports global stability, economic resilience, and energy security.

The Washington meeting this week is therefore seen not just as another round of trade talks, but as a key moment in shaping a more dynamic and mutually beneficial future for India and the United States.

Their discussions highlighted shared priorities in trade, defense, technology, and critical minerals, signaling a positive trajectory for future collaboration between the two nations.

In his first official visit since his Senate confirmation as US Ambassador and Special Envoy for South and Central Asian Affairs, Gor emphasized the deep trust and friendship that define the relationship between Washington and New Delhi.

The meeting reflected both nations’ shared commitment to mutual economic growth, regional security, and technological advancement.

Prime Minister Modi, in a social media post, welcomed Ambassador Gor warmly, expressing confidence that his tenure would “further strengthen the India–US Comprehensive Global Strategic Partnership.”

Modi’s words set an optimistic tone for the evolving diplomatic engagement between the two democracies.

During the meeting, discussions centered on expanding bilateral trade, promoting defense cooperation, and advancing emerging technologies such as artificial intelligence, cybersecurity, and clean energy.

Ambassador Gor also highlighted the significance of critical minerals — a vital area for both countries as they aim to secure sustainable supply chains in the age of green technology and renewable energy.

Speaking at the US Embassy in New Delhi, Gor described his first official engagement in India as “an opportunity to reaffirm the deep friendship between our nations and explore new avenues for partnership that benefit our people and economies.”

He noted that the collaboration between the two countries extends beyond trade and defense to encompass innovation, education, and climate sustainability.

Ambassador Gor also met with External Affairs Minister S. Jaishankar and National Security Advisor Ajit Doval, underscoring the strong alignment between the US and India on regional and global issues. Both sides reiterated their shared vision for a free, open, and inclusive Indo-Pacific region, emphasizing cooperation in maritime security, counterterrorism, and strategic technologies.

Gor’s visit comes at a time when both nations are working to strengthen economic resilience amid global challenges.

India and the US have made remarkable progress in areas such as clean energy collaboration, semiconductor manufacturing, and defense production partnerships under the framework of the Initiative on Critical and Emerging Technologies (iCET).

The Ambassador also acknowledged the personal rapport between President Donald Trump and Prime Minister Modi, calling it a foundation for deeper cooperation.

“President Trump considers Prime Minister Modi a great and personal friend,” Gor stated, adding that both leaders share a vision of prosperity and innovation that benefits not only their nations but also the broader global community.

While trade discussions remain ongoing, both sides reaffirmed their commitment to resolving differences through dialogue and mutual understanding. The spirit of partnership remains evident, as India and the US continue to align on key global priorities — including sustainable development, digital transformation, and inclusive economic growth.

As part of his visit from October 9 to 14, Ambassador Gor will engage with Indian government officials, industry leaders, and think tanks to further explore collaboration in education, research, and entrepreneurship. His itinerary underscores the growing synergy between Indian innovation and American expertise, marking the next phase in a partnership built on shared values and common goals.

With both nations celebrating more than seven decades of diplomatic relations, this meeting marks another milestone in the evolving India–US friendship.

As the world’s two largest democracies deepen cooperation across multiple domains, the visit by Ambassador Sergio Gor reaffirms a bright future for bilateral engagement, technological innovation, and strategic collaboration.

Addressing the nation on Sunday, Modi revived his long-standing push for “Swadeshi,” or self-reliance, saying everyday products made abroad should gradually be phased out. “Many of the products we use daily are foreign-made, often without us realizing it. We must change this,” he said, encouraging Indians to prioritize homegrown brands.

The appeal follows Washington’s recent decision under President Donald Trump to impose a 50 percent tariff on Indian exports — a move that has rattled New Delhi’s trade strategy. In response, Modi’s supporters have launched boycott campaigns targeting popular American companies such as McDonald’s, Pepsi, and Apple, all of which enjoy a strong consumer base in India’s vast market of 1.4 billion people.

US brands have become increasingly visible in Indian households and retail outlets, with platforms like Amazon further expanding their reach into smaller towns and rural areas. Modi argued that steering consumers and shopkeepers toward Indian-made goods would strengthen local industries and spur economic growth.

Meanwhile, Commerce Minister Piyush Goyal is expected to travel to Washington in the coming weeks for high-level trade talks aimed at easing tensions and seeking a path toward more balanced relations.