"Of course, we welcome these developments. This [decision] has become a result of our tough negotiations with US officials over the last six months. During these negotiations we put across our vision of this situation. We told them that India is an energy reliant country and an abrupt reduction of oil imports from Iran will affect our economy. The US side said they understand these concerns and it is not in their interest to damage Indian economy," the source said.
READ MORE: India May Pay for Iranian Oil in Rupees Amid US Sanctions on Tehran — Reports
On Monday, the United States exempted India, together with seven other oil-importing nations, from its new sanctions targeting Iran's energy sector.
Earlier, India informed the US that the abrupt suspension of crude imports from Iran would lead to a spike in gasoline prices in the country.
India has been reluctant to cut oil imports from Iran because Tehran is New Delhi's second-largest oil supplier behind Iraq.
In May, US President Donald Trump announced that the United States would withdraw from the Iran nuclear agreement or the Joint Comprehensive Plan of Action (JCPOA) and re-impose sanctions against Tehran that were lifted under the accord. The first round of US sanctions were imposed in August.