The scaling up of Liquefied Petroleum Gas (LPG) imports from the US is part of a plan to address Washington’s concerns about the trade deficit with India, but the government is clear the much-touted trade deal with that country will take place only if it is “fair.”
India’s one-year Liquefied Petroleum Gas (LPG) sourcing contract with the US announced on Monday is part of a long-term deal that is indicative of the progress in relations between the two sides, commerce and industry minister Piyush Goyal said .
He said that the bilateral trade agreement (BTA) could be announced as soon as it becomes fair, balanced and equitable. “When the deal becomes fair, equitable, balanced you will hear good news soon,” he said.
“Negotiations are a process and India as a nation has to secure its interests. Have to secure the interests of our stakeholders, businesses and balance it with our sensitivities. With the farmers, with the fishermen, with small industries, When we find the right balance, rest assured we will get outcomes on this score,” Goyal added.
“We just signed a major LPG agreement for importing over a long period of time every year 2.2 million tonnes per annum of LPG. So it is an ongoing process. We both (India-US) are equally committed to expand trade and commerce between the two countries,” he said at the 22nd Indo-US Economic Summit organised by Indo-American Chamber of Commerce.
On Monday the Minister of Petroleum and Natural Gas Hardeep Singh Puri had announced on ‘X’ that Indian PSU oil companies have successfully concluded a 1 year deal for imports of around 2.2 MTPA (million tonnes per annum) LPG, close to 10% of our annual imports—for the contract year 2026, to be sourced from the US Gulf Coast—the first structured contract of US LPG for the Indian market.”
An official on Monday had termed the deal as part of India’s endeavour to balance trade with the US. The trade balance in favour of India had brought in 25% reciprocal tariffs on India. The other 25% is for buying Russian oil.
Goyal sought to dispel the view that there has been a hiatus in the relationship between India and the US. He mentioned the LPG deal and the 10-year defence pact as examples of deep engagement between the sides despite additional tariffs. “Partnership that is as comprehensive as an India-US relationship with many elements, every element need not run at the same speed.”
On Monday an official had said that the first tranche of the BTA with the US that will address 50% additional tariffs on Indian products is more or less near closure and we should get it soon.
President Donald Trump had said last week the US is “pretty close” to reaching a “fair trade deal” with India, adding that he will lower the tariffs imposed on Indian goods at “some point”.
While the first part or tranche of the BTA would address the immediate concerns of both sides, negotiations would continue on other aspects of the BTA.
India and the US have been negotiating a bilateral trade agreement since March this year. So far, six rounds of talks have been completed, with the last round happening 15-17 October in Washington. The decision to sign a BTA was made in February and fall of this year was kept as a deadline for the first tranche. The agreement aims to more than double the bilateral trade to $ 500 billion by 2030 from the current $ 191 billion.
