NEW DELHI, Feb 4 (Reuters) – India aims to diversify its energy sources amid changing global circumstances, the country’s trade minister said on Wednesday, two days after the U.S. slashed tariffs on Indian goods in exchange for New Delhi halting Russian oil purchases.
U.S. President Donald Trump on Monday announced a trade deal with India that reduced tariffs to 18% from 50%. He said India would instead buy oil from the U.S. and potentially Venezuela.
In his first statement to the parliament on the trade deal, Trade Minister Piyush Goyal did not specifically refer to shifting energy purchases away from any country.
“To secure the energy needs of 1.4 billion Indians is our priority. Given the changing global circumstances, diversifying of energy sources is part of this strategy,” he said.
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He noted India had successfully protected sensitive sectors such as agriculture and dairy.
The Kremlin said it sees nothing new in India’s plan to diversify its oil supplies.
“We, and not only us, but all specialists in the field of international energy affairs, are well aware that Russia is not the only supplier of oil and petroleum products to India,” Kremlin spokesman Dmitry Peskov told reporters on Wednesday.
Indian refiners have not been told by the government to stop buying Russian oil and would need a wind-down period to complete purchases already in process, Reuters reported.
The Asian market had witnessed a relief rally on Tuesday as the India-U.S. deal marked reconciliation between the two sides after months of tensions.
India’s equity benchmarks, however, ended marginally higher on Wednesday as losses in IT stocks dampened optimism over the trade deal.
Lawmakers from India’s key opposition party Congress have questioned the lack of detail regarding the deal and have sought clarification on the extent of farm access offered to Washington.
“Has India compromised in any manner under U.S. pressure? Have we agreed to zero tariffs on American imports, as claimed by Mr. Trump?,” Congress chief Mallikarjun Kharge said in a post on social media.
Goyal on Tuesday said India and the U.S. would issue a joint statement on the deal after reaching a “final understanding” on the deal.