Joe Biden Presidency Tenure may resume the Iranian Oil import to India | Are there other possibilities?

The United States is considered the superpower. Every action that takes place in the U.S.A at a global level creates a greater reaction upon foreign trade between countries. India export data indicates a long-running foreign trade relationship between the two countries. On the other hand, India’s relationship with the U.S.A is also in question since Joe Biden has won the presidential election 2020.

As per the latest reports, the “Make in India” movement and “self-reliant India Movement” have greatly impacted India’s import data. To the reader’s surprise, India has continued to either prohibit or reduce the import of several items from other countries. One such item is Iranian oil. Recently in 2020, India reduced its import of Iranian oil by 94%. It had stunned the U.S. Administration, which acknowledges India as the primary energy market.

Apart from this, Indian Oil and gas producers have responded well to the reduced import of oil as they desire to secure personal profit. For now, India is on the verge of calling off its import-export relations with Iran. However, this decision proportionally depends on the US’s relations with Iran. A few reports at Cybex.in revealed that in 2019, India purchased as much Iranian oil that amounted to 20 Million USD per day. Later in that year, the Indian ambassador declared that Iranian oil import to India contract with Iran had been terminated.

Another factor that will soften the import export of crude oil between India and Iran is the current low prices. One of the few researchers at Cybex Exim verified that it does not matter to India if the president would have been Joe Biden or Donald Trump. In both conditions, India would have resumed purchasing Iranian oil because of low supply and increased demand, i.e.., grasping the commodity in bulk at a shallow rate.

India is seeking to boost the import of US crude. Unlike Saudi Arabia, oil export from the US is handled by private producers. Hence, it is implausible to matter who is the new president of the United States. Cybex.in also forecasts that the US crude will be available at competitive rates ahead in the future. However, Iran-India is carrying out their best to protect the foreign trade data in order to suppress the consequences of any indefinite possibilities due to COVID-19 widespread.