NEW DELHI: India’s commitment to import $500 billion of goods from the US over five years depends not just on the ability of Indian companies to place orders but also on how quickly American suppliers can cater to the demand.Last year, India imported goods worth $45.5 billion from the US; during the first nine months of the ongoing fiscal year, it shipped close to $40 billion, of which over a fifth, or nearly $11 billion, comprised American crude and petroleum products. The oil shipments were 35% higher than the corresponding period of the previous fiscal year. Another $2.7 billion was accounted for by coal and coke.
Govt officials said these are the product segments which will see an immediate increase given that India is likely to substitute some oil imports from other countries, including possibly Russia, with American oil. Besides, Indian oil companies have already signed an agreement to source more LNG.
Similarly, India may substitute Indonesian coking coal with American product, which is also seen to be cheaper and of better quality, a senior official told TOI.“The increase to $100 billion of imports may not happen in the first year, but it will move in that direction,” said the official. Commerce and industry minister Piyush Goyal said that it is for Indian importers and US sellers to work out the products where imports will increase.“It is for them to make an offer that the buyers (in India) can’t resist,” he said, adding that high-tech products such as chips, semiconductors and airplanes and components will help reach the goal.For Indian buyers, there will be a challenge in terms of the ability of suppliers such as Boeing to export goods given the order backlog.Similarly, there is a massive demand for chips from across the globe, and Indian buyers will be in the queue for them as well.
