India open to more energy imports from US as Commerce Secretary set to leave for trade talks
Despite the 50 per cent tariff hike imposed by the Donald Trump administration, India's exports to the US rose to $45.82 billion in the first half of current financial year (April-September) which represents a 13.3 per cent increase over the corresponding figure of $40.42 billion in same period last year.
The Commerce Ministry has stated that India can import more crude oil and natural gas worth $12-$13 billion from the US without altering configuration of the refineries. This government is keen to diversify the country’s energy import portfolio, subject to availability at the right price.
Government sources indicated that India's Chief Negotiator Rajesh Agrawal is slated to leave for the US on Wednesday even as the negotiating team is already in the US and discussions are underway on bilateral commitments.
On the India-US trade talks, Commerce Ministry said the US is in a shutdown and with a reduced workforce, the time isn't right for a full-fledged negotiation.
Stating that "there is lot of noise in the air" on engagement between both the sides, the Commerce Ministry said that it was heartening to see exports keep pace during global turbulence, with the industry maintaining business relations and supply chains and even absorbing costs. US Ambassador designate to India had recently met India's top leadership.
The Commerce Ministry said that the impact of tariffs on India-US trade will be studied based on commodity-wise data, with an almost certain impact on sectors facing 50 per cent tariffs, adding that October's trade data will give a more firm picture. The Ministry indicated that while India is still doing better in exports to the US compared to the previous year, there are parts of supply chains fighting challenges to trade.
India is also likely to source more renewable energy technologies from the US as part of the trade package, a step that will help the country fight climate change.
The development comes in the backdrop of the new US ambassador Sergio Gor taking charge at the US embassy in New Delhi.
Gor called on Prime Minister Narendra Modi last week and held discussions on bilateral issues including defence, trade, and technology. The importance of critical minerals to both of the countries was also discussed at the meeting.
