New Delhi, February 8
Union Commerce and Industry Minister Piyush Goyal clarified that India's decisions on Russian oil imports are taken solely by domestic buyers and are not dictated by the recently concluded India-US interim trade agreement framework, noting that it is in the country's "strategic interest" to diversify its energy sources.
Speaking to ANI, he addressed concerns over bilateral consensus on energy.
"The buying of crude oil, LNG, or LPG from the US is in India's strategic interest as we diversify sources. But the decisions are taken by the buyers themselves. The trade deal does not decide who will buy what and from where," Goyal said.
He explained that the agreement primarily ensures smooth trade flows between the two countries and preferential access over competitors.
"The trade deal ensures that the pathway to trade is smooth and ensures preferential access. FTAs are all about preferential access to your competition. So today, when we've got an 18 per cent reciprocal tariff, we have a preference over other developing nations who are usually our competition. And that's why the free trade deal becomes very attractive," Goyal added.
On whether the deal influences India's approach to Russian oil, the Union Minister said, "I don't deal with that," and noted that the Ministry of External Affairs would be better suited to comment on the matter.
He also emphasised that while various ministries coordinate on broader issues, the nuances of trade deals fall under his purview, just as geopolitical matters are handled by the foreign office.
"We all work together. But if there's a nuance or a detail about the trade deal, obviously, if you ask, let's say the agriculture minister, or you ask the rural development minister, or you ask the telecom minister, or you ask the foreign minister, he wouldn't know the nuances of the trade deal. Obviously, he will direct it to me, just as I will direct the issues related to geopolitics to the foreign minister," he added.
The United States and India announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.
As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US has said it will later remove reciprocal tariffs on select items, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.
India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
- ANI
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