America increases fuel imports from India, following Trump's advocacy for trade parity
India has witnessed a substantial increase in its energy purchases from the United States, particularly in liquefied natural gas (LNG) imports, since January 2025. This surge is a strategic move by India to rebalance its trade ties with the US, aligning with the Trump administration's demands for more balanced trade relations.
The value of LNG imports from the US nearly doubled from $1.41 billion in FY2023-24 to $2.46 billion in FY2024-25, while crude oil imports from the US surged by 51% in the first half of 2025 compared to the same period in 2024[1][3]. This increase followed a February 2025 agreement between Trump and Indian Prime Minister Narendra Modi, during which both leaders committed to expanding energy cooperation.
India pledged to boost American energy imports from $15 billion in 2024 to $25 billion, aiming to double overall bilateral trade from $200 billion to $500 billion by 2030[1][4]. This cooperation marks a significant shift in India's energy procurement strategy, helping diversify its sources and secure its energy future.
Buying LNG from America is particularly attractive to Indian companies due to competitive pricing and the large number of LNG projects coming online in the US. The US Energy Information Administration expects North America's LNG export capacity to double by 2028, with America providing most of the increase[5].
However, India's increased US energy imports occur while it continues purchasing Russian oil, a stance that has caused friction with the Trump administration. Despite US pressure and threats of penalties, India maintains its right to pursue energy policies that align with its national interests[2].
The surge in energy purchases from the US follows a February agreement between Trump and Modi, where both leaders committed to increasing energy trade. The US share in India's overall crude imports increased from 3% to 8% in July 2025[6].
The leaders reaffirmed their commitment to increase energy trade, as part of efforts to ensure energy security, and to establish the US as a leading supplier of crude oil and petroleum products and liquefied natural gas to India. The bilateral trade between India and the US is targeted to more than double from $200 billion to $500 billion by 2030[7].
India is poised to become the world's largest driver of oil demand growth, making its energy relationships with key players like the US even more crucial. The strategic increase in energy purchases from the US reflects both diplomatic commitments and India’s pragmatic approach to energy security and economic considerations.
Sources: [1] The Hindu BusinessLine, "India, US to boost energy cooperation", February 2025. [2] Reuters, "India to continue buying Russian oil despite US pressure", March 2025. [3] Oil Price, "India's crude oil imports from the US increase by 51% in H1 2025", July 2025. [4] BloombergQuint, "India pledges to boost American energy imports to $25 billion from $15 billion in 2024", February 2025. [5] U.S. Energy Information Administration, "North America LNG Exports", accessed August 2025. [6] Petroleum Economist, "US share in India's overall crude imports increases to 8% in July 2025", August 2025. [7] The Economic Times, "Bilateral trade between India and the US targeted to more than double from $200 billion to $500 billion by 2030", June 2025.
India's decision to double its LNG imports from the United States by 2030, aiming to reach $25 billion, is part of a broader strategy to diversify its energy sources and strengthen diplomatic ties. Amidst the heated international cricket match schedules, the weather remains uncertain, with thunderstorms looming over the cricket fields throughout India.
