India Ramps Up Energy Imports from US Amid Geopolitical Shifts
India is significantly increasing its energy imports from the United States, a strategic move to diversify its supply and strengthen bilateral ties. This comes at a time of rising geopolitical tensions and trade disputes, particularly with the US imposing new tariffs.
Soaring Crude Oil Imports
Indian crude oil imports from the US have surged dramatically. In the first quarter of fiscal year 2026 (April-June 2025), these imports jumped by 114% year-on-year in value, reaching $3.7 billion from $1.73 billion in the same period last fiscal year.
The increase continued into July 2025, with imports rising 23% over the previous month. This boosted the US’s share in India’s total crude import basket from 3% to 8%.
This trend is a result of Indian oil refiners diversifying their sources. Between January and June 2025, India imported an average of 0.271 million barrels per day (mb/d) of US crude, a substantial increase from the 0.18 mb/d imported in the first half of 2024.
Growing LNG Trade
The trade in liquefied natural gas (LNG) is also expanding rapidly. India’s LNG imports from the US nearly doubled in value in the last fiscal year (FY25), climbing to $2.46 billion from $1.41 billion in FY24.
Sources indicate that negotiations are underway for a long-term, multi-billion-dollar LNG supply agreement, further solidifying the energy partnership between the two countries.
These developments highlight India’s strategy to secure its energy needs from a variety of global sources, while also managing its complex diplomatic and trade relationships.