India, US trade talks make headway 'but no rush' for agreement

New Delhi, Oct 20 India and the US have made some headway in their trade talks to resolve the tariff issue, even as New Delhi has said that it will not rush into an agreement.

India’s trade delegation, led by Commerce Secretary Rajesh Agrawal, is reported to have held constructive meetings with US officials in Washington last week, a senior official said.

While the US under the Trump administration hardened its stand on Russian oil purchases by India, New Delhi has assured Washington that Indian companies would increase purchases of American oil and gas. Since India is the second-largest consumer of oil and gas in the world, these imports would help to reduce the US trade deficit with India, an issue that Washington has flagged.

Commerce and Industry Minister Piyush Goyal has stated that while the talks with the US are progressing in a "very cordial atmosphere", they are not based on deadlines.

"There is no agreement unless we fully address the interests of India's farmers, fishermen, and the country’s MSME sector," the minister said.

US President Donald Trump claimed last week that Prime Minister Narendra Modi has assured him that India will reduce purchases of Russian crude oil.

In response to this claim, India also issued a statement on Thursday that the country’s import policy for oil and gas is guided entirely by the interests of the Indian consumer amid a volatile global energy market.

"India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective. Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy. This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions," Ministry of External Affairs Minister Randhir Jaiswal said.

"Where the US is concerned, we have for many years sought to expand our energy procurement. This has steadily progressed in the last decade. The current administration has shown interest in deepening energy cooperation with India. Discussions are ongoing," he added.

On Wednesday, Commerce Secretary Agrawal said energy purchases from the US — largely crude oil — have fallen from $25 billion to around $12–13 billion in the past seven to eight years. "So, there is headroom of around $12–15 billion, which we can purchase without worrying about the configuration of refineries," he said while responding to a question on whether India could step up oil imports from the US to strike a deal.

"There is a bilateral commitment, and in the discussions we are in, we have indicated very positively that India, as a country, would like to diversify its portfolio as far as energy imports are concerned. That’s the best strategy for a big buyer like India," he said.

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