NEW DELHI: India is contemplating importing gold and different excessive worth objects, together with silver, platinum and treasured stones from the US to handle Washington’s concern of a major commerce deficit with India, two individuals conscious of the matter mentioned.
Underneath bilateral commerce settlement being negotiated by the 2 sides, concessional duties for treasured metals and completed jewelry could possibly be win-win for each (REUTERS FILE PHOTO)
Commerce diversification could possibly be one of many methods to bridge the bilateral commerce deficit with the US, they mentioned requesting anonymity. Underneath the continued negotiation of a bilateral commerce settlement (BTA),the 2 companions are contemplating provide chain integration for mutual positive factors. Underneath BTA, concessional duties for treasured metals and completed jewelry could possibly be win-win for each, they mentioned.
“The US is a leading producer of gold, silver, and platinum. India can easily source a sizable quantity of these valuable items from the US,” one of many individuals mentioned on situation of anonymity. India’s complete import of treasured metals, together with gold and gems crossed $74 billion in first 11 months of present monetary 12 months (April 2024-February 2025). In 2023-24 India imported $74.81 billion value of these things. Of this about $5 billion of imports had been from the US.
Apart from crude oil, import of excessive worth objects akin to American gold, treasured metals and gem stones would definitely assist in balancing commerce between the 2 nations, a second individual mentioned, additionally on situation of anonymity. “The US is miffed by the trade deficit, which is one of the key reasons for imposing 26% reciprocal tariff on Indian. BTA is expected to suitably address this.”
On Wednesday, the exterior affairs ministry spokesperson addressed the problem and mentioned each are very robust companions within the realm of commerce and financial relations. “As far as trade issues are concerned, we are in negotiations on a bilateral trade agreement, and hopefully, we will be able to address these issues and conclude expeditiously this particular agreement,” spokesperson Randhir Jaiswal advised a media briefing.
Based on commerce ministry’s information, India exported merchandise value $76.37 billion to the US within the first 11 months of present monetary 12 months (April 2024-February 2025) and imported items of $41.62 billion, leading to a deficit of $34.75 billion.
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The reciprocal tariffs kicked in on Wednesday, though India continues to be hopeful {that a} BTA will clear up this drawback. The influence of reciprocal tariffs slapped on India by President Donald Trump is but to be recognized however the authorities is engaged with the US administration to cope with the scenario by concluding a bilateral commerce settlement, exterior affairs minister S Jaishankar mentioned on Wednesday.
On February 13, PM Narendra Modi and President Donald Trump resolved to deepen US-India commerce relations, aiming to spice up complete bilateral commerce from about $200 billion to $500 billion by 2030 — an formidable initiative dubbed “Mission 500.” To begin with, the 2 leaders on February 13 additionally agreed to signal a BTA by the autumn of 2025. “Both sides are deeply engaged to fast-track a mutually beneficial BTA at the earliest,” the primary individual mentioned.
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Indian refiners have already began importing American crude oil, which can also be a part of the commerce diversification technique. Nonetheless, sourcing treasured objects from the US is advantageous as a result of they’re simple to move, therefore economical by way of logistics prices in comparison with crude oil, he added. India imports over 87% of crude oil it processes and it imported crude value $124 billion from numerous nations in 11 months of 2024-25 (April-February interval).
India has already raised its crude oil imports from the US and at present it’s among the many 5 prime suppliers after Russia, Iraq, Saudi Arabia and the United Arab Emirates (UAE). Indian refiners imported about 221,000 barrels per day (bpd) of crude oil from America in January 2025 in comparison with 70,600 bpd in December 2024. In February 2025, it rose to three,57,000 bpd.
Based on the US Vitality Data Administration (EIA) information, after the bilateral push through the Trump 1.0, the US’ month-to-month crude oil exports to India jumped from 524,000 barrels in April 2018 to 10,441,000 barrels in simply two months, and peaked at 21,558,000 barrels in December 2021 solely to plunge to 2,881,000 barrels in December 2023.
“Imports of energy and precious metals from USA are some of the low-hanging fruits to reduce India-US trade deficit. Flow of oil from American fields in huge quantity will not only break cartelisation by OPEC, but also soften international oil prices and thereby, fuel-induced inflation,” the primary individual mentioned. Whereas India could improve imports of American crude, gold, silver and platinum, focus can also be made on importing different high-value merchandise, almonds and American whiskey, he added.
“From the Indian perspective, actually working out something bilaterally with the US is not at all a sort of a negative or a sort of an unwanted situation. On the contrary, it is something which has long been our objective,” Jaishankar added whereas talking at a convention.