'It is based on India's national interest': Russia on its energy ties with New Delhi
New Delhi (PTI): Russian crude oil remains the most cost effective option on the global market and Russia's energy ties with India are in tune with New Delhi's national interests, Russian ambassador Denis Alipov said on Thursday.
Alipov's remarks came hours after US President Donald Trump claimed that Prime Minister Narendra Modi assured him that New Delhi will stop procuring Russian crude oil.
"Russian energy remains the most cost-effective option on the global market, and Russia has consistently honoured its commitments while showing flexibility in developing alternative logistics and payment systems in the face of attempts to disrupt this cooperation," he said.
In his address at an event, Alipov also said that Russian crude oil accounts for around one-third of India's total hydrocarbon imports.
The Russian ambassador also described Russia as India's "most reliable energy partner" and said there is scope for enhancing the overall ties, including in areas of defence, trade, connectivity and technology.
Alipov said the India-Russia strategic partnership is a "stabilising force" in global affairs and a powerful driver of economic growth".
"This kind of relationship is in increasing demand worldwide as we collectively navigate an era of unprecedented geopolitical turbulence," he said.
Later, Alipov, while responding to a question on Trump's remarks and if India will continue to procure Russian crude oil, said: "this is a question for the Indian government (to answer)."
The Indian government is dealing with the matter having in mind the national interests of this country in the first place, he said.
"Our cooperation in the energy sector is very much in tune of those interests," he said.
In response to the US president's comments, India said it is "broad-basing and diversifying" its sourcing of energy to meet market conditions.
External Affairs Ministry spokesperson Randhir Jaiswal, responding to Trump's remarks, said it has been New Delhi's consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario.
He said India's import policies are guided entirely by the national interest, adding India has been looking at expanding energy ties with the US as well.
"Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy," Jaiswal said.
"This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions," he added.
India's continuing purchase of petroleum products from Russia notwithstanding Western sanctions has become a major issue that resulted in severe downturn in ties between New Delhi and Washington.
In Washington, Trump told reporters that "he (Modi) has assured me there will be no oil purchases from Russia."
The US president said India may not be able to cut the procurement immediately but the process has started.
"It (process) has started. He can't do it immediately. It's a little bit of a process, but the process is going to be over soon," the US president said.
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India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
