India’s US oil imports are strategic decisions, not trade pact obligations: Piyush Goyal

Buying crude oil, LNG and LPG from the US is firmly in India’s own strategic interest as the country diversifies its energy basket, Union Commerce and Industry Minister Piyush Goyal said, asserting that such decisions are driven by commercial considerations and not dictated by the India-US interim trade agreement.  

Speaking in an exclusive interview with ANI, Goyal stressed that the framework does not mandate who buys what or from where, but merely provides a smooth pathway for trade and preferential access. He strongly rejected allegations that India has “ceded sovereignty” under the deal, calling the criticism “absolute nonsense” and describing the agreement as a “labour of love” aligned with India’s long-term goal of becoming a developed nation by 2047.  

On the trade pact, Goyal said sourcing energy from the United States helps India reduce dependence on limited suppliers, but reiterated that actual purchases are made independently by buyers and companies. He underlined that free trade agreements are designed to improve competitiveness.  

“FTAs are all about preferential access to your competition. So, today when we got an 18% reciprocal tariff, we have a preference over other developing nations who are usually our competition,” Goyal said.  

The minister said the interim agreement would open up vast opportunities across sectors and social groups.  

“It will provide immense opportunities for our youth, our sisters, our women, huge opportunities for our farmers and fishermen, our MSMEs will flourish, they will become the provider of a lot of material that is required by the USA, our textile sector, our footwear and leather sector, our toys sector, handloom, handicraft, auto components, furniture — sky's the limit as Sergio mentioned this is a partnership with unlimited potential,” Goyal added.  

India and the United States recently announced a framework for an Interim Trade Agreement on reciprocal and mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.  

Under the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of agricultural and food products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, along with other items.  

In return, the United States will impose an 18 per cent tariff on select Indian exports such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal goods and certain machinery.  

Subject to the successful conclusion of the interim pact, Washington has indicated it will later remove reciprocal tariffs on select Indian exports, including generic pharmaceuticals, gems and diamonds, and aircraft parts, and also lift national security-linked tariffs on certain aircraft and aircraft parts from India.  

As part of the broader framework, India has also expressed its intention to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.