Buying US crude, LNG in India’s strategic interest as oil sources diversify: Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal

• Piyush Goyal rejects claims India ceded sovereignty in US interim trade deal
• India-US deal aims for mutual tariff reductions and expanded trade opportunities
• India to buy $500B in US energy, aircraft, tech, and metals over 5 years

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Union Commerce and Industry Minister Piyush Goyal has strongly rejected allegations that India has “ceded sovereignty” under the framework of the India-US interim trade agreement, calling such criticism “absolute nonsense” and describing the deal as a “labour of love” aligned with India’s long-term development goals.

Speaking in an exclusive interview with ANI, Goyal said the agreement was the result of intense negotiations by both sides and was firmly rooted in India’s vision of becoming a developed nation by 2047.

On the India-US trade deal, Union Commerce Minister Piyush Goyal said buying crude oil, LNG or LPG from the US is in India’s own strategic interest as the country diversifies its oil sources, but stressed that such decisions are taken by the buyers and companies themselves.

He said the trade deal does not specify who will buy what or from where, and instead focuses on ensuring a smooth pathway for trade and preferential access.

“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.

“Absolute nonsense. Whoever is articulating this must be a pretty ignorant person who doesn't understand that this trade deal is truly a labour of love. It has come out of intense negotiations on both sides, in the best interests of our country's stated goal to become a developed and prosperous country by 2047 – Viksit Bharat 2047,” he said.

The minister underlined that the interim agreement would open up wide-ranging 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) that was 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, as well as on 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 additional products.

In return, the United States will impose an 18 per cent tariff on select Indian goods 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 agreement, the US has indicated it will later remove reciprocal tariffs on select Indian exports, including generic pharmaceuticals, gems and diamonds, and aircraft parts. The US will also remove tariffs on certain aircraft and aircraft parts from India that were earlier imposed on national security grounds, according to the joint statement.

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