Govt’s Supreme Priority Is Energy Security of 1.4 Bn Indians, Says Piyush Goyal

Commerce & Industry Minister Piyush Goyal said in Parliament on February 4 that ensuring energy security of 1.4bn Indians will be government’s “supreme priority”, hinting that any change in crude suppliers will not lead to rise in pump prices.

Goyal said India had secured its “core sensitivities” in food and agriculture in the US deal, reported Times of India.

Assuring how India’s interests are protected, Goyal expressed, “I wish to reiterate to this House that India’s core sensitivities in food and agriculture have been fully safeguarded. Equally, this partnership will unlock new opportunities for MSMEs, entrepreneurs, skilled workers and industry, enable access to advanced technologies, and support India’s vision to Make in India for the world, Design in India for the world, and Innovate in India for the world,” he said, a day after the USTR was reported saying India had managed to protect its farm products.

Commenting on the choice of oil suppliers, the minister 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 with this in mind.”

The remark stood out against the backdrop of US President Donald Trump’s claims that India had decided to stop the purchase of Russian oil to secure a trade deal.

While Russia has remained India’s top source, its imports have come down as discounts declined.  In recent years, India has begun sourcing oil from 41 countries, compared with 27 countries a few years ago.

“Day before yesterday, Prime Minister Narendra Modi and President Donald Trump spoke over the phone to discuss multiple issues of bilateral and international significance. Subsequently, President Trump announced a reduced rate of 18% for Indian exports to the US. I wish to underline that this rate is lower than the tariffs imposed by the US on several competing countries, thereby enhancing India’s export competitiveness in the US market,” he said.

The announcement, made by US President Donald Trump on his social media platform, Truth Social, stated that the US had agreed to lower a 25% reciprocal tariff on Indian imports to 18% and remove a 25% punitive tariff on Indian goods for India's purchase of Russian oil. A high 50% tariff barrier that went into effect in August 2025 severely impacted Indian exports, especially labour-intensive industries like textiles, leather goods and marine products.

The minister claims that by 2047, the framework agreement will improve ties between the US and India and move the country closer to Viksit Bharat, or developed India.

Energy Security Strategy Aligned

India’s oil import diversification aligns with its long-term security strategy. According to the ‘India Energy Outlook 2021’ report published by International Energy Agency (IEA), India is the world’s third-largest crude oil importer and remains vulnerable to geopolitical supply disruptions. In addition, the IEA report stated that India sees the largest increase in energy demand of any country, across all of our scenarios to 2040 due to an expanding economy, population, urbanisation and industrialisation.

The government’s push to widen supplier bases is aimed at reducing price shocks and safeguarding domestic fuel affordability.