Union Commerce and Industry Minister Piyush Goyal has said the interim trade agreement between India and the United States will incorporate India’s energy requirements and help secure crude oil at competitive prices.
Goyal said both countries have agreed to work towards increasing bilateral trade to $500 billion annually by 2030. The proposed trade framework, he said, would include India’s energy imports such as crude oil, Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG).
“India is the fastest-growing large economy in the world, and its energy demand is rising by around seven percent annually. Increasing imports and having more suppliers would help India secure crude oil at more competitive prices,” Goyal said.
Last week, India and the US announced a framework for an interim trade agreement aimed at boosting two-way trade through reduction of import duties on selected goods. Under the arrangement, the US will lower tariffs on Indian goods to 18 percent from 50 percent, while India will eliminate or reduce duties on US industrial products and a range of agricultural and food items.
Goyal also referred to India’s steel sector, which currently produces around 140 million tonnes annually and is expected to double output in the coming years. He said this would require higher imports of coking coal, presently valued at about ₹1.5 lakh crore and projected to rise to ₹3 lakh crore.
India currently depends on two to three countries for coking coal imports, he said, adding that expanding the supplier base would ensure supply security and competitive pricing.
The minister also noted that greater access to US infrastructure, connectivity and distribution-related products could support India’s expansion in sectors such as data centres. India’s information technology exports currently stand at around $200 billion, and improved access to advanced equipment could further strengthen the sector, he added.
