Union Commerce and Industry Minister Piyush Goyal on Saturday said the interim trade agreement framework finalised between India and the United States will factor in India’s growing energy requirements and help the country access crude oil at more competitive prices.

Addressing reporters, Goyal said both countries have agreed to work towards scaling up bilateral trade to USD 500 billion annually by 2030, with the government actively pursuing measures to achieve this goal. He noted that the proposed trade volume would include India’s energy imports such as crude oil, LNG and LPG.

“India is the fastest-growing large economy in the world, and its energy demand is rising by around 7 per cent annually. Increasing imports and having more suppliers would help India secure crude oil at more competitive prices,” Goyal said.

Last week, India and the US announced a framework for an interim trade agreement aimed at boosting two-way commerce through reciprocal tariff reductions. Under the arrangement, the US will lower tariffs on Indian goods from 50 per cent to 18 per cent. In return, India will eliminate or significantly reduce import duties on all US industrial goods, along with a broad range of American food and agricultural products.

Highlighting the energy and industrial implications of the pact, the minister said India currently produces around 140 million tonnes of steel annually and expects output to double in the coming years. Meeting this target will require substantial imports of coking coal, presently valued at about Rs 1.50 lakh crore and projected to rise to Rs three lakh crore.

Goyal pointed out that India is presently dependent on two to three countries for coking coal supplies, and diversifying sources would ensure competitive pricing as well as greater supply security.

He further said the US holds strength in infrastructure, connectivity and distribution-related products, areas in which India seeks greater access to support expansion in sectors such as data centres.

India’s information technology exports currently stand at around USD 200 billion, or Rs 18 lakh crore, he said, adding that access to advanced US equipment could significantly accelerate growth and potentially increase IT exports to nearly Rs 45 lakh crore.