The United States and India have moved to strengthen cooperation in energy and defence despite ongoing strains in their relationship over trade and immigration policies.

During his second visit to India in less than five months, US Secretary of State Marco Rubio held wide-ranging talks with External Affairs Minister S Jaishankar in Mumbai, focusing on trade, energy, technology, defence and people-to-people ties.

Ahead of the meeting, Rubio described India as a crude oil refining "superpower" and encouraged greater processing of Venezuelan crude by Indian refiners. He is also set to visit Reliance Industries' Jamnagar refinery.

Commenting on the proposed India-US trade agreement, Rubio said: "I would say we're about as close as you can be without having an executed agreement. I think there's a small number of items left to wrap up. So I think that will happen shortly -- we're hoping, which it should -- and hopefully have some good news to announce fairly soon. And perhaps the leaders can sign it thereafter."

Following the talks, Jaishankar said he and Rubio had "shared views on further advancement of our ties, focusing on trade, energy, technology, defence and people-to-people ties."

The discussions also covered regional and global developments, including West Asia, and the role of energy security in strengthening the strategic partnership.

Rubio stressed the importance of increasing energy trade between the two countries and argued that stronger cooperation could help diversify India's supply chains and meet its growing energy demand. He also praised recent progress in bilateral defence and civil nuclear cooperation and advocated increased Indian purchases of American technologies and systems.

"In Mumbai, Indian External Affairs Minister @DrSJaishankar and I discussed energy security and defence cooperation while reaffirming the importance of advancing the U.S.-India strategic partnership," Rubio said.

US Ambassador to India Sergio Gor described the discussions as productive, focusing on defence, energy, emerging technologies and trade. Addressing concerns about India's purchases of Russian oil, Rubio acknowledged New Delhi's efforts to diversify its energy sources.

"I think what India has expressed repeatedly is its desire to diversify their energy portfolio, which is a smart thing to do. Obviously, it's not easy to do that from one day to the next day," he said.

"I think they've made substantial progress in that regard, and we're happy to see that. But in the end, it's not just about Russian oil; it's about their desire to diversify, and obviously we think we can be a source of some of their energy inputs."

Referring to alternative suppliers, Rubio added: "Obviously, we've discussed Venezuela and other countries, and I think it's in our interest to have a strong ally with a diverse energy portfolio."

Praising India's refining capability, he said: "India is a refining superpower. They have the ability to do that and they have companies that know how to do that."

Rubio noted that some Indian companies already possess oil concessions in Venezuela and suggested they could help strengthen global energy supplies.

"I'm not claiming to you that Venezuela alone can fill the hole that could be caused by some of the things that are happening around the world, but I think over time, it most certainly can, and in the short term, it can certainly provide the means," he said.

"So, that's one of the things we'll talk about. With India, we've talked about it in the past, and they sound ready. They're ready to do it; they're willing to do it," he noted.

Explaining his visit to Jamnagar, Rubio emphasised the strategic importance of energy.

"Energy is related to national security. Countries fight wars over energy; economies collapse over lack of energy. We're going to go see a company that has a tremendous amount of refining capability. It makes all the sense in the world to talk to them about it," he said.

He also pointed to disruptions caused by tensions in the Strait of Hormuz and Houthi attacks on energy infrastructure in Saudi Arabia, which have contributed to supply challenges and diesel shortages in several markets.

During the visit, Rubio and Jaishankar paid tribute to the victims of the 26/11 Mumbai terrorist attacks at the Taj Mahal Palace Hotel.

"We must continue our strong partnership in combating terrorism in all its forms and manifestations," Jaishankar said.

Rubio stated: "At the Taj Mahal Palace Hotel, I laid a wreath honoring the victims of the horrific November 26, 2008 terrorist attacks, including six American citizens."

"We remember those lost, honour the courage of those who responded, and reaffirm the enduring US-India partnership and our shared commitment to combating terrorism," he added.

Despite the positive engagement, challenges remain in the relationship. Bilateral ties have faced pressure from US tariffs on Indian goods, President Donald Trump's claims regarding the de-escalation of the India-Pakistan military confrontation in May 2025, higher H1B visa fees, tougher immigration measures and restrictions affecting a key green-card processing program used by major technology firms, including Tata Consultancy Services and Wipro.

Nevertheless, the Mumbai discussions underscored both countries' determination to deepen cooperation in trade, energy, technology, defence and strategic security as negotiations on a landmark trade agreement approach their final stages.

PTI