'It's In India's Interest To Buy US Oil,' Piyush Goyal Responds To Trump Condition

Goyal says Russian oil not part of US trade deal; India’s energy choices guided by strategic interests.

Trump’s executive order directed the US Commerce Secretary to monitor India’s, warning that tariffs could be reimposed.

Source : ANI

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Union Commerce Minister Piyush Goyal on Sunday addressed questions regarding the ongoing US-India trade deal, carefully sidestepping direct comments on the purchase of Russian oil. When asked about US President Donald Trump’s warning that India could face a 25% tariff if it resumed Russian oil imports, Goyal emphasized that sourcing oil from the US is in India’s strategic interest.

India Prioritises Strategic Oil Sources

“Purchasing crude oil, LNG, or LPG from the US is in India's strategic interests as we diversify our oil sources,” the minister said. He further added that issues related to Russian oil fall under the purview of the Ministry of External Affairs. On whether bilateral agreements on Russian oil or defense could affect the trade deal, Goyal clarified, “No, not at all. Trade deals don't determine who buys what from whom. Trade deals facilitate trade and ensure preferential access. 

MEA Confirms Russia Oil Exclusion

The very purpose of a Free Trade Agreement (FTA) is to provide preferential access. When we get an 18% reciprocal tariff, we gain an advantage over other developing countries, which are usually our competitors.” Earlier, Trump’s executive order directed the US Commerce Secretary to monitor India’s energy imports, warning that tariffs could be reimposed if India resumed purchasing Russian oil.

However, the Ministry of External Affairs (MEA) stated that India’s decisions on energy purchases are guided by the needs of its 1.4 billion population, and that Russian oil is not mentioned in the US trade deal.