India is keen to diversify its sources of crude oil and coking coal and would welcome high-quality coking coal supplies from the United States, Commerce and Industry Minister Piyush Goyal said on Wednesday, PTI reported.
Speaking at an event in Mumbai, Goyal said India is currently dependent on a limited number of geographies for coking coal, leading to price volatility. “We want to diversify our oil sources. I want to diversify the source of coking coal for example. I am dependent on 2 or 3 geographies (for that) and prices keep fluctuating. I would love to have American coking coal which is high quality coming to India,” he added
He noted that the US can supply several goods critical for India’s economic growth, including Graphics Processing Units (GPUs) for artificial intelligence applications, equipment for data centres and high-performance computing infrastructure.
At the same time, Goyal said India can manufacture products in segments where the US may not be competitive, while America can serve as a key source of advanced technology and capital. He added that India has an aircraft demand of about $100 billion from the US over the next five years and may require additional purchases to enhance domestic capacity and lower airfares.
Under an interim trade agreement framework, India has indicated its intent to purchase goods worth $500 billion from the US over the next five years. An Indian delegation is expected to travel to the US next week to finalise the legal text of the pact, which is likely to be signed in March.
Goyal said a trade deal with the US would open significant opportunities for Indian companies, especially in labour-intensive sectors and technology services.
Referring to market concerns about artificial intelligence impacting Indian IT firms, the minister said the reaction was “ridiculous”, arguing that Indian technology companies would be integral to the growth of AI.
On India’s broader trade strategy, Goyal said nine free trade agreements have been concluded in the past four years, adding that these deals were negotiated from a position of strength.
“These nine agreements have been negotiated from the position of strength. Today India does not engage as a meek country, we are not apologetic about some of the problems that we have, we are negotiating for the future,” he added.
