(Commonwealth_India) During a significant meeting between Prime Minister Narendra Modi and U.S. President Donald Trump in Washington, India committed to increasing its oil and natural gas imports from the United States. Foreign Secretary Vikram Misri stated that India’s energy purchases from the U.S. could rise from $15 billion last year to $25 billion shortly. This move came at a time when the U.S. was imposing tariff threats, and the energy trade between the two countries became a key topic of discussion. According to a Reuters report, U.S. exports of crude oil to India had already seen an increase in early 2025, with India receiving about 357,000 barrels per day (bpd) of crude in February, compared to just 221,000 bpd the previous year.
India, as the world’s third-largest oil importer and consumer, is heavily dependent on imported oil to meet its energy needs. More than 85% of its crude oil requirements are met through imports, which makes securing stable and diverse sources of hydrocarbon supplies an essential aspect of the country’s energy policy. In this context, the agreement to increase oil and natural gas imports from the U.S. is a significant step for India. It is not only beneficial for diversifying the country’s energy sources but also crucial for strengthening the broader strategic and economic ties between the two nations.
The energy trade between India and the U.S. is expected to play a vital role in achieving India’s broader economic goals, especially the ambitious target of doubling bilateral trade to $500 billion within the next five years. At present, the trade dynamics are tilted in India’s favor. According to statistics from the Office of the United States Trade Representative, India’s trade surplus with the U.S. has been growing. In 2024, the goods trade deficit with India stood at $45.7 billion, marking a 5.4% increase compared to 2023. The energy trade will likely be a crucial element in balancing these trade figures and boosting the economic relationship.
Experts like Gauri Jauhar, Executive Director at S&P Global Commodity Insights, highlight the importance of this development in enhancing India’s energy security. She emphasized that increasing oil and gas imports from the U.S. would not only reduce India’s dependence on traditional oil suppliers but would also provide greater long-term supply diversity. This diversification is particularly important as global energy markets remain volatile and unpredictable.
Additionally, the move to purchase more U.S. energy could help India in its efforts to reduce its reliance on the Middle East and other geopolitical hotspots for crude oil supplies. By fostering closer energy ties with the U.S., India is positioning itself to mitigate potential supply risks and ensure a more stable and reliable flow of energy resources to fuel its growing economy.
India’s increased energy purchases from the U.S. reflect a broader strategy to secure diverse and long-term energy supplies while strengthening bilateral economic ties with the United States. This development is not only beneficial for India’s energy security but is also expected to contribute to the long-term growth and stability of the economic relationship between the two countries. As India continues to develop its energy infrastructure and expand its economy, securing reliable energy sources will remain a central priority in its pursuit of sustainable growth and development
