New Delhi, Oct. 22 -- India and the US are closing in on a long-pending trade deal that could slash the current tariffs for Indian exports to 15-16% from a punishing 50%, according to three people aware of the matter.

With energy and agriculture emerging as key cards at the negotiating table, India may agree to gradually reduce its imports of Russian oil, the people cited above said on condition of anonymity. The purchases had prompted a punitive levy of 25% on Indian exports, which is over and above the 25% reciprocal tariffs announced in April.

Currently, Russia accounts for about 34% of India's crude imports. About 10% (by value) of the country's current oil and gas needs are imported from the US.

India may also allow in more non-ge...