Press SAUTE on Instant Pot. Add oil and once it's hot, add minced garlic and onions and saute till onions are soft and translucent.
Next, add rinsed basmati rice. Toast the rice for 30 secs (till aromatic). This step helps your rice cook up into separate grains and is more flavorful. This step is optional.
Add diced red bell pepper, jalapeño, red chili powder, ground cumin, salt, water, or vegetable broth and give a quick stir and deglaze the pot. Make sure there is no food particle sticking to the pot to avoid burn alerts.
Add the tomato sauce or canned crushed tomatoes on top. Do NOT STIR.
Close the Instant Pot with pressure valve to Sealing. Cook on High Pressure for 5 minutes.
Allow natural pressure release for 5 minutes and then do Quick Release for any remaining pressure.
Add fresh cilantro, lime juice. Stir well to combine.
Serve this restaurant-style Mexican aka Spanish rice as a side or inside burritos or tacos!