India Expands Energy Portfolio Over Global Shifts: Goyal
Commerce and Industry Minister Piyush Goyal emphasized that India's energy security strategy focuses on diversifying energy sourcing in accordance with changing international dynamics and markets. He provided further clarification on the components of oil purchase commitments associated with the India-US trade agreement.
Upon the disclosure of the agreement, President Donald Trump of the US stated that, during a phone conversation with Prime Minister Narendra Modi, India had consented to cease its purchase of oil from Russia, opting instead to procure a substantial amount from the US and possibly Venezuela.
He emphasized that all decisions made by India are driven by this goal and encouraged fellow members to consider these matters from an appropriate standpoint.
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This fiscal year, there has been an increase in India's crude imports from the US. From April to November, the US contributed to 8.14 percent of the total crude oil imports, showing an increase from the 4.58 percent observed during the same period in the previous year.
In contrast, the percentage of Russia's share in India's crude oil imports declined to 32.40 percent from 35.12 percent in the 2024-25 period. Venezuela accounted for just 0.37 percent of India's crude oil imports in the initial eight months of the fiscal year.
According to reports from S&P Global Energy, India significantly reduced its intake of Russian crude oil in January, with a decrease of almost 70 percent compared to the previous month, amounting to approximately 436,000 barrels per day.
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The industry anticipate that this trend of decreased imports will persist through the end of March and potentially into April, as shipments are being scheduled up to 10 weeks in advance.
In exchange for India's pledges regarding tariff reductions, the US has consented to lift the 25 percent punitive tariff that was levied as retribution for India's purchase of crude oil from Russia.
Additionally, the US has agreed to decrease the reciprocal tariffs on Indian products from 25 percent to 18 percent. Goyal briefed Parliament on the collaborative efforts between both parties to efficiently finalize the required technical procedures and paperwork pertaining to the trade agreement, to expedite the unlocking of its economic potential.
He further stated that the specific details of the agreement will be disclosed soon after the conclusion of these procedures. The minister emphasized that India's fundamental concerns in the areas of food and agriculture have been thoroughly protected.
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He further stated that the alliance will create fresh prospects for MSMEs, entrepreneurs, proficient laborers, and the industry sector. It will also facilitate the acquisition of cutting-edge technologies and bolster India's ambition to manufacture products for global markets, develop designs in India catering to global demands, and foster innovation in India for worldwide application.