However, the union minister said that those decisions rest firmly with companies and commercial buyers, not with trade negotiators.
“The buying of crude oil or LNG, LPG from the US is in India’s own strategic interests as we diversify our oil sources,” Goyal said in conversation with ANI.
Goyal sought to draw a clear distinction between India’s energy strategy and the scope of the India-US trade arrangement, stressing that the agreement does not prescribe where India should source its oil or gas from.
“But the decisions are taken by the buyers, by the companies themselves. So, the trade deal doesn’t discuss who will buy what and from where. The trade deal ensures that the pathway to trade is smooth, ensures preferential access,” the minister added.
According to the him, the purpose of the trade deal is not to direct procurement choices but to create a smoother, more predictable environment for bilateral commerce.
India and the US announced a framework for the deal last week, with the aim of concluding it by March and lowering tariffs while deepening economic cooperation.”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.
The remarks come amid contrasting claims from Washington.
US President Donald Trump said earlier this week that India had agreed to stop buying Russian oil and sharply raise purchases from the US and possibly Venezuela as part of the trade understanding. The Indian government, however, has not confirmed such a commitment yet.
Pivoting away from Russia
Even so, according to a Reuter’s report, market signals suggest Indian refiners are already paring exposure to Russian crude.
Refining and trading sources told the wire agency that major buyers have avoided fresh Russian oil purchases for delivery in April and are expected to stay away for longer, a move that could ease the path towards a trade pact with Washington.
The report found that Indian Oil, Bharat Petroleum and Reliance Industries are not accepting offers for Russian oil loading in March and April, though some deliveries for March had already been scheduled earlier.
Most other refiners, sources told Reuters, have also paused purchases of Russian crude.
Russia has been India’s largest crude supplier in recent years, largely due to deep discounts following Western sanctions after the Ukraine war. Indian imports of Russian oil averaged about 1.7 million barrels per day last year, far exceeding supplies from the US and Venezuela combined.
However, volumes have declined in recent months, with intake falling to a two-year low in December.