India Expects To Increase Energy Trade With US: Commerce Minister Piyush Goyal

Piyush Goyal indicated that India and the United States can collaborate on nuclear power development.

New York:

India anticipates expanding its energy trade with the United States in coming years, with America playing a substantial role in India's energy security objectives, according to Commerce and Industry Minister Piyush Goyal.

"The global community recognizes that energy security requires collective effort. India represents a major player in the energy sector... we import significant energy from various countries, including the United States," Mr Goyal stated on Tuesday in New York.

Mr Goyal delivered the principal address at the event titled 'Energy Security in a Shifting Global Landscape: Building Resilient Energy Markets Across Borders,' organized jointly by the Indian Consulate General in New York, the US-India Strategic Partnership Forum (USISPF), and ReNew, India's leading decarbonization solutions provider.

"We project increased energy trade with the United States in forthcoming years. As natural allies and close partners, America will significantly influence our energy security goals, ensuring price stability and diversified energy sources for India, unlocking boundless collaborative potential across energy and other sectors," he remarked.

Mr Goyal heads a delegation conducting meetings in New York with US representatives, aiming for the prompt conclusion of a bilateral trade agreement.

Acknowledging that September 22 marks the beginning of Navratri, an auspicious period in the Hindu calendar, he mentioned the belief that this day heralds positive developments. The event attracted notable attendees including Parliament Member Anurag Thakur, Petroleum and Natural Gas Ministry Secretary Pankaj Jain, USISPF CEO and President Mukesh Agni, ReNew co-founder Vaishali Nigam Sinha, and ReNew Chairman and CEO Sumant Sinha.

Mr Goyal emphasized nuclear power as another domain for US-India cooperation and future planning.

"We've discussed this area extensively. Certain elements required adjustment, and I believe India is working to support private sector nuclear power initiatives," "The optimal approach for all parties involves securing resilient critical mineral supplies and diversifying sources to prevent trade weaponization. We must develop infrastructure, particularly cross-border transmission grids," which can facilitate clean energy transition across nations, he stated.

"We must collectively align regulatory frameworks to guarantee cross-border energy without geopolitical concerns undermining energy resilience or security," he added.

Mr Goyal noted India's ongoing nuclear power investments, with plans to double capacity through government intervention, while hoping for substantial expansion. "The sector faces price and cost challenges that require addressing to enhance competitiveness," he said.

He highlighted that India occupies a "sweet spot" for clean energy expansion, targeting growth from 250 gigawatts to 500 gigawatts over five years. Mr Goyal referenced the European Union's Carbon Border Adjustment Mechanism (CBAM), noting its far-reaching consequences.

"This mechanism could potentially isolate the EU and damage their economy, rendering them a small island while others continue trading. They would become price-uncompetitive, causing domestic inflation," Mr Goyal observed, adding that it would make their infrastructure and living costs unsustainable, causing their products to lose market share and export potential.

"This green protectionism resembles a trap—once someone buries their head in it, extraction becomes exceedingly difficult," Mr Goyal concluded.