India Keen to Diversify Crude Oil, Coking Coal Sources; Eyes High-Quality US Supplies: Piyush Goyal

Why It Matters

Diversifying energy inputs lowers price volatility and supply risk, while expanding U.S. trade fuels technology transfer and strengthens strategic partnership.

Key Takeaways

• India seeks US high‑quality coking coal to cut dependence
• $500 bn Indian imports from US planned under interim pact
• $100 bn aircraft demand drives joint manufacturing opportunities
• US lifted tariffs after India halted Russian oil purchases
• AI hardware imports flagged as critical for Indian IT growth

Pulse Analysis

India’s move to broaden its energy portfolio reflects a calculated response to volatile global markets. By courting U.S. coking coal, which boasts higher calorific value and lower impurity levels, New Delhi hopes to mitigate the price swings that arise from dependence on a narrow supplier base. This diversification aligns with broader energy security goals, as India balances its growing demand for steelmaking inputs with environmental and cost considerations, while also positioning itself as a more resilient trading partner for the United States.

The interim trade agreement between the two nations serves as a catalyst for deeper commercial integration. Targeting $500 billion in purchases over five years, the pact emphasizes high‑technology goods—GPUs for artificial‑intelligence workloads, data‑centre infrastructure, and advanced aerospace components. The projected $100 billion aircraft demand underscores a mutual interest in joint manufacturing, potentially lowering ticket prices and expanding India’s domestic aerospace ecosystem. For U.S. exporters, the deal opens a vast labour‑oriented market, while Indian firms gain access to cutting‑edge capital equipment, accelerating the country’s Make‑in‑India agenda.

Geopolitically, the removal of the 25 percent tariff on Indian imports of Russian oil signals a shift toward cooperative engagement, rewarding India’s decision to curb Russian energy exposure. Simultaneously, Goyal’s emphasis on AI hardware highlights the sector’s strategic importance for India’s IT services industry, which faces market anxieties despite its role in enabling AI adoption. By securing reliable supplies of GPUs and related components, India aims to sustain its competitive edge in global software services, while the broader trade framework reinforces a partnership that balances economic interests with shared security objectives.

India keen to diversify crude oil, coking coal sources; eyes high-quality US supplies: Piyush Goyal

Source: PTI · Published on Feb 18, 2026 at 07:23 PM IST

India wants to diversify its sources of crude oil and coking coal and would “love” to source high‑quality coking coal from the United States, Commerce and Industry Minister Piyush Goyal said on Wednesday.

He also said that the United States can provide certain goods that India needs desperately for its economic growth. These goods can include graphics processing units (GPUs) for artificial‑intelligence applications, equipment for data centres and high‑performance computing.

“India can manufacture products that the US cannot compete in, while America can be a strong source of technology and capital,” Goyal said.

There is already $100 billion in aircraft demand from the US in the next five years, and the country needs more to increase local capacity and bring down fares, Goyal added.

“We want to diversify our oil sources. I want to diversify the source of coking coal, for example. I am dependent on two or three geographies (for that) and prices keep fluctuating. I would love to have American coking coal which is high quality coming to India,” he said at an event in Mumbai.

Under an interim trade agreement with the US, India has expressed its intention to buy goods worth USD 500 billion in the next five years from America. The Indian team is visiting the US next week to finalise the legal text of the agreement, which is likely to be signed in March.

“Doing a (trade) deal with America is good for India,” he said, adding it opens huge opportunities for Indian firms, particularly in labour‑oriented goods and technology services.

Earlier this month, US President Donald Trump removed the 25 percent tariffs imposed on India for purchasing Russian oil, citing that India has undertaken “significant steps” and New Delhi has committed to stop directly or indirectly importing oil from Moscow.

The minister also called the stock‑market response to the likely impact of AI on Indian IT services companies “ridiculous”.

“I find it quite ridiculous because these are the companies who will be required for AI to flourish,” Goyal said.

Further talking about India’s free‑trade pacts, Goyal said that in the last four years nine agreements have been finalised.

“These nine agreements have been negotiated from a 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.