India to increase US oil and gas imports to cut trade gap and avoid tariffs.Foreign Secretary Vikram Misri said India bought $15B in US energy and may raise it to $25B after PM Modi met President Trump.
Misri noted higher energy imports could help reduce the trade deficit.Indian state-owned firms plan to boost US crude and LNG purchases. Indian Oil is in talks with Cheniere for a long-term LNG deal, and Gail India seeks a US liquefaction plant stake, said Chairman Sandeep Gupta.In a joint statement, Modi and Trump pledged to expand energy trade and hydrocarbon investments.India, the top US crude buyer in 2021, imported 406,000 barrels daily (14.5% of US exports).
By late 2024, US crude fell below 5% of India’s imports, as buyers favored cheaper Russian oil.After US sanctions on Russian oil, India is rebuilding supply chains to maintain discounted crude.US-India trade hit $82.5B (April–Nov 2024), with India exporting $52.9B and importing $29.6B — a gap risking US tariffs.
India, wary of a trade war under Trump, offers concessions like tariff cuts and phasing out extra levies.On Thursday, President Trump announced that Prime Minister Modi had agreed to start negotiations aimed at reducing the US trade deficit with India.
Trump attributed the deficit to India’s high import duties, which he said had prompted the US to impose retaliatory tariffs. The talks aim to resolve trade tensions and promote fairer market access between the two countries.
