While Donald Trump, the President of the US, has levied a 50% tariff on Indian imports, he appears to have missed India's steady rise in oil and gas imports from America—a development that has assisted India in narrowing its trade surplus with the US, which has been one of the key goals of the Trump administration's trade policy.
Official statistics indicate that India's imports of US oil and gas increased by 51% during the first six months of the current year. Specifically, India's liquefied natural gas (LNG) imports almost doubled to $2.46 billion during the financial year 2024-25 from $1.41 billion during 2023-24.
Prime Minister Narendra Modi had committed in February to increase India's US energy imports to $25 billion in 2025 from $15 billion in 2024 with a view to contributing towards easing the US trade deficit. Subsequently, Indian oil and gas firms that are owned by the government started negotiating long-term energy agreements with US suppliers. New Delhi has also prioritized diversifying its energy sources to limit dependence on Russian oil.
India has clarified that purchases of Russian oil are within the G7 price cap regulations and no sanctions extend to imports below the cap. The US policy even encourages such buys, as more oil in the markets helps avoid spikes in prices. Purchasing oil at lower prices also reduces Russia's income.
Meanwhile, India has pointed out that the US still imports fertilisers, chemicals, uranium, and palladium from Russia.
New Delhi has elaborated that strategic partnership between New Delhi and Washington runs much deeper than trade. While citing that relations between India and the US are multi-faceted and trade is "only one aspect" of a relationship founded on broader geopolitical and strategic considerations, the government has emphasized this point.
Also, the government told the Parliamentary Standing Committee on External Affairs that the sixth round of India-US talks is still on schedule. The talks are likely to lead to a full-fledged trade agreement between the two countries.
Read also| Putin Commends India for Its ‘Rightful Influence’ on the World Stage
