India is seeking to diversify its crude oil and coking coal imports, with a proposed trade agreement with the United States expected to support that strategy, Commerce and Industry Minister Piyush Goyal said at the Global Economic Cooperation Summit in Mumbai. He noted that India remains dependent on a handful of geographies for coking coal, leading to price volatility, and expressed interest in sourcing high-quality American coking coal.

Of the 50% additional tariffs previously imposed by the US, 25% linked to India’s purchase of Russian oil have been removed. The remaining 25% reciprocal tariffs are expected to be reduced to 18%, pending a US presidential order. Following the outbreak of the Ukraine conflict, India significantly increased oil imports from Russia, which accounted for 31% of crude imports between April and December, the highest share among suppliers. While US President Donald Trump had indicated that India agreed to halt Russian oil purchases, Foreign Secretary Vikram Misri reiterated that national interest would guide India’s decisions.

The agreement, announced earlier this month, envisages India purchasing $500 billion worth of US energy products, aircraft, technology, precious metals, and coking coal over five years. Goyal said access to GPUs, data centre equipment, and advanced computing systems would strengthen India’s AI ecosystem, while expanded aircraft procurement would boost capacity and improve airport utilisation.