Mumbai, India: India’s Commerce and Industry Minister Piyush Goyal said on Saturday that the interim trade agreement between India and the United States is expected to make crude oil and other energy products cheaper for India by ensuring secure supplies at competitive prices.
Speaking about the agreement, Goyal said India’s growing energy needs have been given special priority in the deal. As a result, India will gain improved access to crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG) from the U.S., helping stabilize prices and strengthen energy security.
Target of $500 Billion in Bilateral Trade by 2030
The minister noted that both countries have set an ambitious target to raise annual bilateral trade to $500 billion by 2030. Energy trade will play a major role in achieving this goal, he said.
“India is one of the fastest-growing large economies in the world, with energy demand rising by nearly 7 percent every year,” Goyal said. “Having a wider pool of suppliers will help India secure crude oil at more competitive prices.”
Tariff Cuts to Boost Trade
Last week, India and the U.S. agreed on a framework for an interim trade deal that includes significant tariff reductions. Under the proposal, the U.S. will reduce tariffs on Indian goods from 50 percent to 18 percent, while India will eliminate or lower import duties on several U.S. industrial products, agricultural goods, and food items. Officials believe these measures will provide a strong boost to bilateral trade.
Steel Production and Coal Imports
Goyal also highlighted India’s plans to expand steel production from the current 140 million tons, potentially doubling output in the coming years. This expansion will increase demand for coking coal, which India currently imports mainly from a limited number of countries.
India’s coking coal imports are valued at around ₹1.5 lakh crore, a figure that could rise to ₹3 lakh crore. Diversifying suppliers through trade partnerships, Goyal said, would ensure both price competitiveness and supply security.
Growth in IT and Data Center Sectors
The minister added that the U.S. has strong capabilities in infrastructure, connectivity, and distribution equipment—areas that India wants greater access to, particularly to support the expansion of data centers.
India’s IT exports currently stand at around $200 billion, and access to advanced U.S. technology could significantly strengthen the sector. Goyal said this could push India’s IT exports to nearly ₹45 lakh crore in the coming years.
Focus on Energy Security
Goyal emphasized that the trade agreement is not only about expanding commerce but also about reinforcing India’s long-term energy security. “Multiple supply sources mean better pricing, reliable availability, and greater stability for Indian industry and the overall economy,” he said.
The interim trade deal is being seen as a key step toward deeper economic cooperation between India and the United States, with energy, manufacturing, and technology at its core.