India had offered the best deal to US before the tariff war: Ex Indian ambassador to Russia

Nagpur: India had offered the best-ever trade package to the US in March-April and negotiators from the American side were impressed, yet talks with the Trump administration failed and triggered a tariff war, said the former Indian ambassador to Russia, Pankaj Saran.

Saran, who's convenor of NatStrat, a Delhi-based research centre, was in Russia between 2016 to 2018 and was also the former deputy national security advisor (NSA). The former diplomat said he has reliable information from his sources in the govt and facts of the deal will come out.


"It's just a matter of time. I don't know why the deal did not work out. But the reason is not economics, it may be political," Saran told TOI on the sidelines of a book launch at National Academy of Defence Production (NADP). The book — Nuances of Transfer of Technology — has been written by two serving officers of the defence PSU, Hindustan Aeronautics Limited (HAL), Laxman Singh and Gaurav Yadav.

"In the earlier Trump tenure too, the US was unhappy with India on trade issues and New Delhi had planned to extend an offer that would suit the Americans. One of the most favourable and ambitious offers was made to the US as soon as Trump took over as President again, but the deal could not be struck," he said.

"The statements from the White House have been rather hostile. As far as buying Russian oil is concerned, India began importing three years ago. What about 60 years ago, when Russia earned billions exporting oil and gas to Europe," he said.

As far as allegations of profiteering by India, the price at which Russians have been allowed to sell has been fixed by the US and Europe, said Saran. "It is a cap of $60/barrel, and if Russia is offering a discount to India it's their discretion," he said.

Saran said there is nothing illegal in buying Russian oil. "It's not a sanctioned item. There are no Western sanctions on Russian oil. Though India only acknowledges UN sanctions, if the US wants India to stop buying Russian oil, it should slap sanctions first," he said.

Saran said Russia has been the most stable international partner for India over the years, while Indo-US relationship has witnessed highs and lows. "It was at a peak a few months ago and has nosedived now. There are factors like Pakistan and Afghanistan with the US. With China, we had the Panchsheel Agreement, the 1962 war, and a series of border conflicts like the Galwan clash," said Saran.