US-India Trade Deal: Trump's Russian Oil Condition Hangs Over India's Energy Diversification Plans
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India's Commerce Minister Piyush Goyal has emphasized that the country's interest in buying crude oil and LNG from the US is strategic and aimed at diversifying energy sources. However, the US President's condition that India must not buy Russian oil or face re-imposed tariffs remains a point of contention. Goyal sidestepped a direct answer to the question, saying it's the Ministry of External Affairs' domain. The MEA has reiterated that energy purchases will be diversified based on market conditions and international dynamics to ensure India's energy security. The US President's executive order removed a 25% "penalty" tariff on India, but left a "monitoring mandate" for the US commerce secretary to track Indian oil imports. Strategic affairs expert Brahma Chellaney notes that this creates a clear trigger: if India resumes buying Russian oil, the 25% punitive tariff could snap back into place. India's energy diversification plans are underway, with refiners reportedly avoiding Russian oil purchases for delivery in April. However, there are no immediate signs of Russian energy purchases dropping to zero altogether. Former Foreign Secretary Nirupama Menon Rao notes that the US executive order signals that energy choices are now treated as geopolitical behavior, not just commercial decisions. She adds that India's leverage is visible, and the tariffs were reversible because India matters economically, strategically, and in the Indo-Pacific balance. The India-US joint statement on the framework for an interim trade agreement does not mention Russia, but commits India to buying $500 billion worth of energy and other items from the US over the next five years. This has been criticized by Opposition MP Priyanka Chaturvedi, who demands a Parliament debate on the deal. The BJP-led NDA regime has been accused of handing over India's national interest and policy to the US. The ongoing Budget Session has been disrupted, with the opposition seeking to discuss the trade agreement in Parliament.
