India has the capacity to purchase an additional $15 billion of oil from the US, a senior commerce ministry official said Wednesday, signaling New Delhi’s intent to speed up trade talks and get a deal.
Data over the last few years shows that energy purchases from the US have gone up, India’s Trade Secretary Rajesh Agrawal told reporters on Wednesday in New Delhi.
“Right now we are at an average of $12-$13 billion as per FY25 figures and there is headroom for $14-$15 billion” more with the current refinery configuration, he said.
The move could bridge the $42.7 billion trade surplus India enjoys and assuage President Donald Trump who has slapped the South Asian nation with a punitive 50% tariff, partly due to its purchase of Russian oil. Indian officials are in the US to meet counterparts and are hoping to secure a deal as early as next month, Bloomberg News reported Monday.
New Delhi’s broad strategy includes reducing the trade surplus by buying more American goods, improving access to Indian markets and easing trade barriers. It is considering roughly $40 billion of big-ticket purchases such as defense and oil from the US to narrow the surplus.
Indian industries have been resilient, absorbing some cost due to the high tariffs and maintaining their supply chains, Agrawal said.
India’s trade deficit widened to the highest in more than a year in September to $32.15 billion, but exports rose 6.7% from a year ago despite the US imposing its steepest tariffs in Asia on Indian goods.
Data over the last few years shows that energy purchases from the US have gone up, India’s Trade Secretary Rajesh Agrawal told reporters on Wednesday in New Delhi.
“Right now we are at an average of $12-$13 billion as per FY25 figures and there is headroom for $14-$15 billion” more with the current refinery configuration, he said.
The move could bridge the $42.7 billion trade surplus India enjoys and assuage President Donald Trump who has slapped the South Asian nation with a punitive 50% tariff, partly due to its purchase of Russian oil. Indian officials are in the US to meet counterparts and are hoping to secure a deal as early as next month, Bloomberg News reported Monday.
New Delhi’s broad strategy includes reducing the trade surplus by buying more American goods, improving access to Indian markets and easing trade barriers. It is considering roughly $40 billion of big-ticket purchases such as defense and oil from the US to narrow the surplus.
Indian industries have been resilient, absorbing some cost due to the high tariffs and maintaining their supply chains, Agrawal said.
India’s trade deficit widened to the highest in more than a year in September to $32.15 billion, but exports rose 6.7% from a year ago despite the US imposing its steepest tariffs in Asia on Indian goods.
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