India Eyes Diversification of Crude Oil and Coking Coal Sources

India is making strategic moves to diversify its sources of crude oil and coking coal, with Commerce and Industry Minister Piyush Goyal expressing interest in importing high-quality coking coal from the United States. This decision is part of a broader effort to secure essential imports crucial for the nation's economic growth.

The minister highlighted the potential for the US to supply goods that India urgently requires, such as Graphics Processing Units (GPUs) for Artificial Intelligence, and equipment for data centers and high-performance computing. Meanwhile, India positions itself as a competitive manufacturer of products that are less feasible for the US to produce, enhancing the bilateral trade potential.

As part of an interim trade agreement, India plans to purchase goods worth USD 500 billion from the US over the next five years. This comes as US President Donald Trump lifted tariffs on India for purchasing Russian oil. Additionally, discussions will focus on finalizing a legal text for the agreement, offering significant opportunities for Indian firms in labor-intensive goods and technology services.