New Delhi: India wants to diversify its sources of crude oil and coking coal and is keen to import high-quality coking coal from the United States, Commerce and Industry Minister Piyush Goyal said on Wednesday. “We want to diversify our oil sources. I want to diversify the source of coking coal for example. I am dependent on two or three geographies (for that) and prices keep fluctuating. I would love to have American coking coal which is high quality coming to India,” he said at an event in Mumbai.
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The minister indicated that diversifying supply would help address price volatility and reduce dependence on limited geographies.
Under an interim trade agreement with the US, India has expressed its intention to buy goods worth USD 500 billion over the next five years from America. An Indian team is scheduled to visit the US next week to finalise the legal text of the agreement, which is likely to be signed in March.
“Doing a (trade) deal with America is good for India,” Goyal said, adding that it opens “huge opportunities” for Indian firms, particularly in labour-oriented goods and technology services.
He noted that the US can provide certain goods India needs for economic growth, including Graphics Processing Units (GPUs) for Artificial Intelligence applications, equipment for data centres and high-performance computing.
At the same time, he said India can manufacture products that the US cannot compete in, while America can be a strong source of technology and capital.
Goyal said there is already USD 100 billion in aircraft demand from the US over the next five years and that India would require more to increase local capacity and bring down airfares.
Earlier this month, US President Donald Trump removed the 25 percent tariffs imposed on India for purchasing Russian oil, citing that India had undertaken “significant steps” and committed to stop directly or indirectly importing oil from Moscow.
The minister also described as misplaced the stock market reaction to the potential impact of Artificial Intelligence on Indian IT services companies. “I find it quite ridiculous because these are the companies who will be required for AI to flourish,” he said.
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On India’s broader trade engagement, Goyal said that nine free trade agreements have been finalised in the last four years. “These nine agreements have been negotiated from the position of strength. Today India does not engage as a meek country, we are not apologetic about some of the problems that we have, we are negotiating for the future,” he added.