India is looking to diversify its sources of crude oil, Commerce Minister Piyush Goyal has said. Goyal’s comments assume significance in light of the India-US trade deal joint statement which lowers tariffs on Indian exports to 18%. The Donald Trump administration has also removed the 25% penal tariffs on India on the condition that it stops buying crude oil from Russia.
India’s crude imports from Russia have dropped since the US imposed sanctions on two major Russian oil firms in late 2025. According to reports, the share of Russian crude in India’s oil imports has dropped to the lowest level since late 2022 and analysts expect the numbers to drop further in the coming months.
India would ‘love’ high-quality coking coal from US
Piyush Goyal said India is looking to broaden its sourcing of crude oil and coking coal and would welcome supplies of premium-quality coking coal from the United States.
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“We want to diversify our oil sources. I want to diversify the source of coking coal for example. I am dependent on 2 or 3 geographies (for that) and prices keep fluctuating. I would love to have American coking coal which is high quality coming to India,” he said according to a PTI report.
He noted that the US is well positioned to supply several products that are critical for India’s economic growth, including graphics processing units used in artificial intelligence, infrastructure and equipment for data centres, and high-performance computing systems.
Goyal said India can produce goods in areas where US manufacturers may not be competitive, while America can serve as an important provider of technology and investment capital.
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He added that demand for aircraft from the US is already estimated at about $100 billion over the next five years, with additional capacity required to expand domestic aviation and help lower fares.
Under the proposed interim trade pact with the United States, India has conveyed its intent to procure goods worth $500 billion from America over the next five years. An Indian delegation is scheduled to travel to the US next week to conclude the legal drafting of the agreement, which is expected to be signed in March.
Piyush Goyal said entering into a trade agreement with the US would be beneficial for India, noting that it would create significant opportunities for domestic businesses, particularly in labour-intensive sectors and technology-driven services.
Referring to India’s free trade agreements, Goyal noted that nine such pacts have been concluded over the past four years. He added that these deals were negotiated from a position of confidence, emphasising that India now engages in trade talks assertively, without defensiveness, and with a focus on long-term interests.
