Energy security of 1.4bn Indians govt’s supreme priority: Goyal in Parliament

NEW DELHI: Commerce & industry minister Piyush Goyal said in Parliament Wednesday that ensuring energy security of 1.4 billion Indians will be govt’s “supreme priority”, hinting that any change in crude suppliers will not lead to rise in pump price.

Goyal said India had secured its “core sensitivities” in food and agriculture in the US deal. “Equally, this partnership will unlock new opportunities for MSMEs...skilled workers and industry, enable access to advanced tech, and support Make in India for the world,” he said, a day after the USTR was reported saying India had managed to protect its farm products.




Evolving international dynamics at core of oil strategy: Goyal

On choice of oil suppliers, the minister said: “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s actions are taken with this in mind.”

The remark stood out against the backdrop of US President Donald Trump’s claims that India had decided to stop the purchase of Russian oil to secure a trade deal.

While Russia has remained India’s top source, its share of imports has come down as discounts fell. In recent years, India has begun sourcing oil from 41 countries, compared with 27 countries a few years ago. Separately, Russia said India is free to purchase oil from anywhere and media reports quoting the Russian foreign ministry said there is “no reason to believe that our Indian friends have reconsidered their approach” on buying oil. “We remain convinced that India’s purchase of Russian hydrocarbons is beneficial to both countries and contributes to maintaining stability in the international energy market. We are ready to continue close cooperation in this area with our partners in India,” a foreign ministry spokesperson said.

Against punitive tariffs of 50% imposed by Trump, including a 25% “penalty” for India purchasing Russian crude, the US has now agreed to lower the additional levy to 18% under the bilateral trade agreement that has been in the works for close to a year.

“I wish to underline that this rate is lower than the tariffs imposed by the US on several competing countries, thereby enhancing India’s export competitiveness in the US market.The agreement also provides significant comparative advantage to Indian exporters, particularly in labour-intensive sectors and manufacturing,” Goyal said.

The US is India’s largest export destination.
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