Union Commerce and industry minister
Piyush Goyal said decisions related to India’s imports of Russian crude oil are taken by domestic buyers and are not dictated by the recently concluded India-US interim trade agreement framework, while stressing that diversification into energy supplies including LNG and oil is in India’s strategic interest.
Speaking to ANI, Goyal addressed concerns over whether the bilateral trade framework has any bearing on India’s energy sourcing decisions.
"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 said the agreement is aimed at facilitating smoother trade flows and improving market access advantages for Indian exporters.
"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 trade framework influences India’s approach towards Russian oil imports, the minister said, "I don't deal with that," adding that such matters fall under the purview of the Ministry of External Affairs.
He said ministries coordinate on broader issues, but domain-specific matters are handled by respective departments.
"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.
India and the United States recently announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade, reaffirming commitment to a broader Bilateral Trade Agreement launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.
Under the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of agricultural and food products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, along with additional products.
The United States will impose an 18 per cent reciprocal tariff on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor items, artisanal goods and certain machinery. The US has also indicated that reciprocal tariffs may later be removed on select products including generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to successful conclusion of the Interim Agreement.
India has also indicated plans to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years, according to the agreement framework.