India will continue to import crude oil from countries where it is available at the most competitive prices and of suitable quality, while factoring in geopolitical conditions and avoiding sanctioned sources, the government told a parliamentary panel on Tuesday.Senior officials from the ministries of external affairs and commerce conveyed this position to the Parliamentary Standing Committee on External Affairs, chaired by Congress MP Shashi Tharoor.
The meeting, which lasted over three hours, was attended by 28 of the panel’s 30 members and included briefings by foreign secretary Vikram Misri, sources quoted by news agency PTI said.Calling the interaction productive, Tharoor said officials answered every question in detail and with confidence. “It was an extremely effective meeting and an example of what the committees can do,” he told reporters after the session.
Trade deals dominate discussions
According to Tharoor, much of the meeting focused on the India-US interim trade agreement and the proposed India-EU Free Trade Agreement (FTA). Issues ranging from Russian oil imports to agricultural products were discussed.Officials informed the committee that work is under way to finalise the interim trade agreement with the United States, but the finer details will only be clear once the deal is concluded. Tharoor said members were told to wait for the formal announcement.On the US decision to impose a reciprocal tariff of 18 per cent on Indian goods, Tharoor remarked that trade has increasingly been “weaponised” globally. As per PTI, Indian products will now face an 18 per cent tariff in the US, down from a combined 50 per cent earlier, which included a 25 per cent tariff plus an additional 25 per cent linked to India’s purchase of Russian oil.“India is among the countries which got the lowest rate,” Tharoor said, noting that EU products would face a 15 per cent tariff, while UK goods would attract a 10 per cent tariff in return for zero tariffs on US exports.
Interim agreement expected next month
Tharoor said the foreign secretary and the commerce ministry’s chief negotiator briefed members extensively but stressed that confidentiality rules limit disclosures. “We are looking forward to the interim agreement being finalised by the middle of next month,” he said, adding that Parliament will discuss it once details are public.On India’s plan to import goods worth $500 billion from the US over five years, Tharoor said officials explained how the target could be approached. “$500 billion is not a hard and fast commitment; we will be trying,” he said, adding that current imports of about $42 billion could be doubled without much difficulty and that there would be no sanctions if the target is not met.
Oil sourcing and regional issues
Sources cited by PTI claimed that officials reiterated India’s approach to oil imports, saying purchases would prioritise affordability and quality, while considering geopolitical realities and non-sanctioned suppliers. Indian oil companies can now also buy crude from the US and Venezuela, after sanctions on Venezuela’s energy sector were lifted following a regime change.On India-Bangladesh relations, Tharoor said New Delhi remains in contact with all stakeholders in the neighbouring country. He added that the panel would hold a Bangladesh-specific discussion with the foreign secretary after the election results there are announced.AAP MP Raghav Chadha also described the briefing as informative, saying officials provided a detailed presentation on the India-US interim deal and the India-EU FTA. “There are some aspects we need to see unfold in the coming days as these trade deals take time to come into effect,” he said, as reported by PTI.
