Amid fresh talks with the US, the govt on Wednesday indicated it was open to stepping up the purchase of American oil and gas as it seeks to thrash out a trade deal.
India’s energy purchases from US have declined from around $25 billion to $12-13 billion. “So, there is a headroom of around $12-15 billion, which we can purchase without worrying about the configuration of refineries… we have indicated very positively that India as a country would like to diversify its portfolio as far as energy imports are concerned. That’s the best strategy for a big buyer like India,” commerce secretary Rajesh Agrawal said ahead of his departure for Washington.
US cites trade deficit with India to make case for duty cuts
The US has cited a large trade deficit with India, around $41 billion last year, to make a case for steep duty cuts. However, govt has proposed more purchases of energy and products such as ethanol from the US to reduce the gap.
The US has also called upon India to slash Russian crude imports and govt has responded by saying it can step up purchases from the US to meet its growing demand. India currently faces crippling tariffs of 50 per cent, of which 25 per cent is secondary sanctions for purchase of Russian crude. “As a country, we will be very happy to buy more energy from the US, subject to… availability at the right price,” Agrawal said amid indications that there was eagerness on both sides to work out a deal.
“Our negotiating team is already in the US, and trying to see if we can have a win-win solution between the two sides, which can address some of these tariff issues,” he said.
With the US in shutdown, the talks are not being described as a “fresh round”. “So, this is not the right time to have a full-fledged negotiation. Having said that, there is a movement on both sides where we are trying to see if there is a pathway to address the current trade challenges. Both sides are discussing to see if there are any answers,” he added.
A deal will help Indian exporters resume shipments to the US, especially with the 25 per cent secondary sanctions being removed.
