Energy security top priority as India plans to diversify sourcing: MEA

After Goyal sidestepped a query on Russian oil imports, MEA said energy security for 1.4 billion people remains India's top priority

The Ministry of External Affairs (MEA) on Saturday said India’s supreme priority remains securing energy supplies for its population of 1.4 billion, as the government pursues a strategy to widen its sourcing across multiple markets.  The response came hours after Union Minister for Commerce and Industry Piyush Goyal declined to comment on India’s imports of Russian oil in the context of the trade arrangement with the United States.

 

The ministry, in a statement, said India is working to diversify its energy procurement in response to market conditions and changes in the global environment.

 

“Insofar as India’s energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government, ” the ministry said.

 

 

It further said, “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s actions are taken and will be taken with this in mind.”

 

Earlier, the White House issued an executive order removing an additional 25 per cent tariff on Indian imports that had been imposed over India’s purchase of Russian crude.

 

During a press interaction after the trade announcement, Goyal said the government is looking to diversify sourcing of certain commodities, including precious metals. He added that procurement decisions are taken by market participants rather than directed by the government.

 

“The government does not direct purchasing decisions, but if the terms are favourable, we would want to broaden our sourcing. If importers of gold or platinum see viable deals, they will naturally be willing to import,” Goyal said.

Trade pact and planned purchases

Earlier on Saturday, India and the United States said they had finalised the framework for the first phase of their bilateral trade arrangement, under which both sides will reduce import duties on selected goods to support two-way trade.

 

The framework builds on negotiations launched by President Donald Trump and Prime Minister Narendra Modi on 13 February 2025 for a broader bilateral trade agreement, according to a joint statement.

 

Under the proposed terms, the United States will lower tariffs on Indian goods to 18 per cent from 50 per cent. The first phase is expected to be signed by mid-March.

 

As part of the wider economic engagement, India expressed its intention to purchase $500 billion worth of US energy, aircraft and components, precious metals, technology products, and coking coal over five years. Both sides also agreed to expand trade in technology goods, including graphics processing units used in data centres, and to deepen cooperation in advanced technology and digital trade.