US-Pakistan Oil Deal Raises Questions About India’s Trade Relations

Image Source: Deccan Herald
US President Donald Trump has signed a trade deal with Pakistan, including plans to develop its “massive” oil reserves. This move comes after Trump imposed a 25% “reciprocal tariff” on India and criticized its economy as “dead.” The deal with Pakistan aims to reduce tariffs, especially on exports to the US.
What Does This Mean for India?
The implications of this deal for India are unclear. While India has larger proven oil reserves and produces more crude oil per day than Pakistan, it still relies heavily on imports. The US helping Pakistan develop its oil reserves may put pressure on India to reconsider its trade relations with the US, particularly regarding oil imports.
Key Points to Consider
- US-Pakistan Oil Deal: The US will help develop Pakistan’s oil reserves, potentially granting drilling rights to American companies.
- Pressure on India: The deal may be seen as a message to India to toe the line on trade and oil imports, or risk upsetting a key ally like the US.
- India’s Oil Needs: Despite having larger reserves, India imports nearly 5 million barrels per day, compared to Pakistan’s 140,000 barrels per day.
- Trade Relations: The US deal with Pakistan may impact India’s chances of buying oil from the US at a favorable rate.
Expert Analysis
The move could be seen as a strategic play by the US to influence India’s trade policies, particularly regarding Russian oil imports. Trump’s comments about Pakistan potentially selling oil to India seem unlikely, given the volatile India-Pakistan relations and Pakistan’s limited oil reserves. The deal’s long-term implications for India-US trade relations remain uncertain.
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