Tariffs to slow energy transition, India mustn't give up coal: Vedanta CEO

Vedanta CEO Deshnee Naidoo said US tariffs will not broadly hit India's economy but will slow global energy transition, adding that India must continue coal use for growth

Vedanta Resources chief executive officer (CEO) Deshnee Naidoo on Tuesday said tariffs imposed by the United States (US) on Indian goods will slow down the pace of global energy transition, hampering decarbonisation efforts worldwide.

 

Speaking at the FT Live Energy Transition Summit India in New Delhi, she noted that while these tariffs would not broadly affect the Indian economy — which is largely driven by domestic consumption — they could fragment international decarbonisation initiatives.

 

“US tariffs will be slowing down the pace and scale of energy transition in the world,” Naidoo said.

 

 

Coal still crucial for India’s energy needs 

With India’s energy demand rising, Naidoo emphasised that coal must remain part of the energy mix for now to ensure reliability and affordability in supporting economic growth.

 

US President Donald Trump’s administration has imposed a 25 per cent reciprocal duty on Indian goods along with a 25 per cent punitive levy for importing Russian oil. While the tariffs are already in force, New Delhi and Washington have reopened talks to reach an interim trade deal.

 

India’s renewable energy goals

Naidoo’s comments come as India pursues its target of 500 GW of renewable capacity by 2030. Currently, about 50 per cent of its total installed capacity of 484.82 GW comes from non-fossil fuel sources.

 

She also highlighted the need to accelerate mineral exploration and production to support the green transition. “Do more and promote upstream exploration and extraction,” she said.  (With PTI inputs.)