India Eyes US Ethanol, LPG Import Tax Cut in Trade Push – Sources Reveal Potential Energy Deal
By Mahmoud Muhd
In a move that could reshape energy trade dynamics, India is reportedly weighing the elimination of import duties on ethanol and liquefied petroleum gas (LPG) sourced from the United States. Insider sources privy to ongoing bilateral trade negotiations have revealed this potential concession, signaling a significant strategic consideration by New Delhi.
This prospective policy shift has the potential to unlock a surge in US energy exports to the burgeoning Indian market. The discussions are understood to be driven by a mutual desire to foster a more equitable trade balance and address specific economic priorities for both global powerhouses.
For American producers, the removal of these levies would translate to enhanced price competitiveness for their ethanol and LPG offerings within India. Conversely, India stands to gain by bolstering its ethanol blending program for gasoline, a key initiative aimed at reducing its dependence on costly crude oil imports and promoting a cleaner energy mix.1 Increased LPG imports from the US could also provide a vital boost to meet India’s escalating energy needs across various sectors.
These deliberations form part of a larger, concerted effort by India and the United States to solidify their economic partnership and iron out existing trade frictions. While the final outcome of these sensitive negotiations remains to be seen, the openness to potentially dismantle import taxes on crucial energy commodities underscores a positive trajectory towards a more robust and strategically aligned trade relationship between the two nations.
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