Oil, defence buys from US on agenda: Envoy
WASHINGTON: New Delhi is committed to buying oil and natural gas worth nearly $5 billion from the United States (US) annually, India’s new envoy in Washington, Harsh Vardhan Shringla, said on Tuesday.
Speaking at a US Chamber of Commerce event, Shringla added bilateral trade between the two countries was growing “exponentially” and not “incrementally”.
India is a recent importer of the US oil and gas. It plans to scale up its imports, which were worth $3.8 billion in 2018. The imports include that of Bitumin substitute and mineral wax, according to the Indian embassy website.
“India is committed to purchasing close to nearly $5 billion of oil and gas from the United States every year (and) our companies have placed orders for 300 aircraft manufactured in the US worth $40 billion,” Shringla said at a reception the Us-india Business Council had hosted for him.
The ambassador spoke about the progress in the bilateral relationship.
“What amazes me is that, in the last few years, the amount of progress that our relationship has made is unparalleled in many senses.
The United States is India’s largest trading partner. We are among the top 10 trading partners in terms of sheer volume of business.”
In terms of the volume of business between the countries, the ambassador said, “We have been galloping forward; we are not moving forward incrementally, we are moving forward exponentially.”
What amazes me is that in the last few years, the amount of progress that our relationship has made is unparalleled in many senses. The United States is India’s largest trading partner. We are among the top 10 trading partners in terms of sheer volume of business
HARSH VARDHAN SHRINGLA, Indian ambassador in US
Bilateral trade between the countries — goods and services — rose from $119 billion two years ago to end the year in 2018 at $140 billion.
Some people — such as former US Vice-president Joe Biden — have said the target should be $500 billion.
The ambassador also spoke about growing defence trade — of billions of dollars of orders that are being implemented – and interests in defence platforms such as Chinook and Apache helicopters and Howitzers.
India and the US are in the midst of talks to resolve trade issues that have bedeviled ties for years, irrespective of parties in power in either capital, to which the Trump administration has added a few of its own, especially, the tariff on steel and aluminum.
The Trump administration has identified India among countries with which the US runs a trade deficit, though it is nowhere near its deficit with China. Indian purchases of US oil and gas and the aircraft are expected to cut the deficit over the years.
President Trump has spoken of these trade talks several times. At a Diwali event last November, he had said they were trying very hard to make better trade deals with India.
“But they are very good traders, very good negotiators … the best. But we are working and it is moving along.”