India ready to scale back Russian oil purchase, seen as alternative to China in manufacturing: US trade official

United States Trade Representative Jamieson Greer - File Photo

US Trade Representative Jamieson Greer said India is reducing Russian oil imports, increasing US energy purchases, and could play a bigger role in global supply chains. A broader US-India trade deal is expected by March, with mutual tariff reductions and expanded trade.

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United States Trade Representative Jamieson Greer highlighted what he described as India’s commitment to winding down purchases of Russian oil and expanding economic ties with the United States, remarks that come amid ongoing negotiations on a broader trade deal expected to be signed by March.

In an interview with Fox Business, Greer noted that India has already begun reducing its dependence on Russian energy, which had surged after 2022 because of discounted crude supplies, and is “ramping back up purchases of American energy and energy from other sources.” He said, “The short answer is yes. They’ve already started winding down their purchases of Russian energy products. They’ve started ramping back up purchases of American energy and energy from other sources.”

His remarks underscore New Delhi’s efforts to align its energy supply priorities with diversification goals, while protecting its own interests. Senior Indian officials have repeatedly stated that energy imports will be driven by commercial and strategic considerations rather than external dictate, emphasising that diversifying energy sources is part of India’s strategy to ensure energy security.

Greer also suggested that India could play a growing role in global manufacturing supply chains as companies seek alternatives to China. He said that India could “be a way station” for firms looking to shift supply chains out of China, noting the country’s large workforce and growing manufacturing capacity.

“We know that many companies already are going that direction. As you mentioned, we want the supply chains here in the United States and as close to home as possible,” Greer said, adding that changes in supply chain patterns are part of a broader shift toward a more resilient and secure economic framework.

Greer’s comments come against the backdrop of an interim trade framework announced by President Donald Trump, in which the US agreed to reduce tariffs on Indian exports from 25 percent to 18 percent. In return, India has agreed to lower tariffs on American industrial, agricultural and technology products and expand purchases from the US, potentially worth up to $500 billion over the next five years.

Greer described the framework as an opportunity that will “reverberate for many years to come”, signalling optimism in the evolving US-India economic partnership.