Despite Trump Tariffs Heat, India Ramps Up Energy Imports from US
While US President Donald Trump continues to slap severe tariffs on India, the country's energy imports from the US have increased dramatically. In the first half of 2025, imports of crude oil increased by 51%. Purchases of liquefied natural gas (LNG) have increased annually. Trump and PM Narendra Modi signed a historic agreement to deepen energy cooperation in February 2025, and it has only been a few months since then.
According to the data, India is attempting to secure energy at reasonable prices while balancing its economic relations with Washington. It's interesting to note that this spike has elevated energy diplomacy and helped drown out the clamour surrounding tariffs. Indian businesses are currently making significant investments in the US energy sector due to factors like pricing and accessibility.
This energy revolution may change Indo-US relations more than a trade war could, as India is expected to overtake all other countries as the world's largest source of oil demand by 2030.
Despite growing trade concerns, India has dramatically expanded its energy imports from the United States. Compared to the same period in 2024, US imports of crude oil rose 51% in the first half of 2025 alone.
The total value of energy purchases increased much further. According to data reported by The Hindustan Times, India’s imports from America grew by 114%, reaching $3.7 billion in Q1 of FY2025-26. This represents an increase from $1.73 billion in the same period last year.
India purchased 23% more crude oil from the United States in July 2025 than it did in June. In just one month, the US's share of India's total crude imports increased from 3% to 8% as a result of this shift.
ALSO READ: Indian Family Killed in West Virginia Crash During Temple Trip
Imports increased after Trump and Modi reached an energy deal in February 2025. Both leaders promised to greatly increase energy cooperation during Modi's visit to the US.
India promised to increase US energy imports from $15 billion to $25 billion by 2024. Both sides also aimed to expand bilateral trade from $200 billion to $500 billion by 2030.
This agreement came at a time when Trump began pushing for a rebalance in trade with India, criticising the trade deficit. Energy purchases were presented as a key part of the solution.
Indian energy firms have found a new opportunity in US LNG. “Buying LNG from America is a very attractive proposition for many Indian companies,” said Prashant Vashisht of ICRA.
The attraction grew stronger after Trump overturned Biden’s pause on new LNG export license processing. That move unlocked American LNG supplies just as Indian demand was rising.
According to the US Energy Information Administration, North America’s LNG export capacity will double by 2028, with most of that coming from the US.
ALSO READ: Himachal Flood Fury: 400+ Roads Blocked, ₹1,692 Cr Damages as Rain Havoc Mounts
India is not just responding to Trump’s trade pressure. It is also acting on a deeper, long-term energy strategy. The International Energy Agency projects that India will surpass China as the world’s largest driver of oil demand growth by 2030. LNG consumption is expected to grow by 78%, hitting 64 billion cubic metres annually.
In light of the evolving energy industry, India needs to establish reliable & scalable energy partnerships, and with its growing capacity and reasonable costs, the US satisfies that need.
Despite the increasing tariff threats by Donald Trump, the Indo-US relationship is being altered by energy diplomacy. India is using energy imports to ease trade tensions and diversify supply chains.
The long-term shift in energy flows may matter more than any short-term tariff policy. With mutual benefits at stake, oil and gas could prove to be the most resilient bridge in this uneasy economic relationship.
