Diversification of energy sourcing in line with evolving international dynamics and markets is at the core of India’s strategy for energy security, Commerce and Industry MinisterPiyush Goyalsaid on Wednesday, clarifying aspects of oil purchase commitments linked to theIndia‑US trade deal.
While announcing the deal on Monday, US President Donald Trump said that in a telephonic conversation with Prime MinisterNarendra Modi, India had agreed to stop buying Russian oil and to buy significantly more from the US and potentiallyVenezuela.
“Members would be aware of issues related to India’s energy sourcing that have been raised in the context of discussions on this agreement. I wish to clarify once again, as the government has stated publicly on several occasions, that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government,” he said in Parliament in his statement on the deal.
He underlined that all of India’s actions are taken with that objective in mind, and urged members to view these issues in their proper perspective.
Crude imports from the US risen
India’s crude imports from the US have risen this financial year. From April to November, the US accounted for 8.14% of total crude oil imports, up from 4.58% in the same period last year. In contrast, Russia’s share declined to 32.40% from 35.12% in 2024‑25. Venezuela’s share in India’s crude oil imports was just 0.37% in the first eight months of the fiscal.
According to S&P Global Energy, India cut Russian crude oil imports by nearly 70% month‑on‑month in January to about 436,000 barrels per day. Industry sources say that oil flows are expected to continue into end‑March and possibly April, with cargoes booked 10 weeks in advance.
In return for Indian commitments on tariff concessions, the US has agreed to drop the 25% punitive tariff that had been imposed as a penalty for buying crude oil from Russia. It has also agreed to reduce reciprocal tariffs on Indian goods to 18% from 25%.
Both sides will now work together
Goyal informed Parliament that both sides will now work together to complete the necessary technical processes and finalise the paperwork related to the trade deal, with the aim of unlocking its potential swiftly. “The detailed contours of the agreement will be announced shortly after completion of these processes,” he added.
India’s core sensitivities in food and agriculture have been fully safeguarded, the minister said, adding that the partnership will unlock new opportunities for MSMEs, entrepreneurs, skilled workers, and industry, enable access to advanced technologies, and support India’s vision to Make in India for the world, Design in India for the world, and Innovate in India for the world.
