As India and US firm up its trade agreement, Union Minister Piyush Goyal said on Sunday that buying crude oil or LNG, LPG from Washington is in New Delhi’s own strategic interests as the country diversifies its energy sources.
However, the union minister said that those decisions rest firmly with companies and commercial buyers, not with trade negotiators.
“The buying of crude oil or LNG, LPG from the US is in India’s own strategic interests as we diversify our oil sources,” Goyal said in conversation with ANI.
Goyal sought to draw a clear distinction between India’s energy strategy and the scope of the India-US trade arrangement, stressing that the agreement does not prescribe where India should source its oil or gas from.
“But the decisions are taken by the buyers, by the companies themselves. So, the trade deal doesn’t discuss who will buy what and from where. The trade deal ensures that the pathway to trade is smooth, ensures preferential access,” the minister added.
According to the minister, the purpose of the trade deal is not to direct procurement choices but to create a smoother, more predictable environment for bilateral commerce.
“FTAs are all about preferential access to your competition. So, today when we got an 18 per cent reciprocal tariff, we have a preference over other developing nations who are usually our competition,” Goyal said.
The remarks come amid contrasting claims from Washington.
US President Donald Trump said earlier this week that India had agreed to stop buying Russian oil and sharply raise purchases from the US and possibly Venezuela as part of the trade understanding. The Indian government, however, has not confirmed such a commitment yet.
