Why does India need more energy suppliers? Union Minister Piyush Goyal explains

Union Minister Piyush Goyal, on Saturday, 14 February, addressed India's energy demands and explained why the country is planning to increase imports and the number of suppliers.

Goyal also highlighted the interim India-US trade deal, which aims to boost trade to $500 billion by 2030 and includes energy requirements such as crude oil and LNG.

Why is India looking for more energy suppliers?

According to Goyal, as the world's fastest-growing large economy, India's energy demand is also rising. Increasing imports and more suppliers may lead to more competitive crude oil pricing.

"India is the fastest-growing large economy in the world, and its energy demand is rising by around 7% annually. Increasing imports and having more suppliers would help India secure crude oil at more competitive prices,” PTI quoted the Union Minister.

Will India-US trade deal address energy needs?

Goyal said that the interim trade agreement reached between the centre and the US will cover India's energy needs and help secure crude oil at more competitive prices.

He further assured that India and the US have agreed to aim to increase annual trade to $500 billion by 2030, and that the government is actively working towards this goal.

The Commerce Minister said the proposed $500 billion trade would include the country's energy requirements, such as crude oil, LNG and LPG.

Last week, India and the US announced they had agreed on a framework for an interim trade deal, where both countries will lower import duties on certain goods to boost bilateral trade.

The US plans to lower tariffs on Indian goods from 50% to 18%, while India will remove or reduce import duties on all US industrial products and many American food and agricultural items.

Need to diversify coking coal imports

The Union minister stated that India produces approximately 140 million tonnes of steel each year and expects this amount will double in the next few years.

To achieve this target, the country needs coking coal, imports of which are currently worth about ₹1.50 lakh crore and are likely to surge to ₹3 lakh crore, Goyal said, adding that India relies on two to three countries for coking coal, and having additional suppliers would guarantee competitive prices and greater supply security.

He also mentioned that the US has strengths in infrastructure, connectivity, and distribution-related products. India seeks increased access to these areas to facilitate expansion into sectors such as data centres.

Goyal observed that India's information technology exports are currently approximately $200 billion, or ₹18 lakh crore, and access to advanced equipment from the US could help the sector expand further, potentially raising IT exports to around ₹45 lakh crore.