Saturday, March 29, 2025
Trump’s Wish Fulfilled: India Increases Energy Imports from U.S., Impact Likely on Russia
New Delhi, August 3, 2025 — Despite recent tariff tensions, India has significantly increased its energy imports from the United States, fulfilling a key objective of U.S. President Donald Trump. The move is seen as part of a broader strategy to balance the bilateral trade deficit, even as India faces a 25% tariff imposed by the U.S. on Indian goods.
India’s crude oil imports from the U.S. rose by 51% from January to June 2025. In the first quarter of the fiscal year 2025–26, the growth was even more dramatic—114%, with the value soaring from $1.73 billion to $3.7 billion. Consequently, the U.S. share in India’s total crude oil imports jumped from 3% to 8%.
Imports of Liquefied Natural Gas (LNG) also surged. In FY 2024–25, India imported $2.46 billion worth of U.S. LNG, up from $1.41 billion the previous year. Industry experts attribute this to competitive American pricing and the operationalization of new energy projects. Many Indian firms are now seeking long-term contracts with U.S. suppliers to ensure stable energy access.
This spike in energy imports aligns with a bilateral agreement signed between Prime Minister Narendra Modi and President Trump in February 2025, under which India committed to raising its annual energy imports from the U.S. from $15 billion to $25 billion. The agreement is part of a broader vision to boost bilateral trade to $500 billion by 2030.
According to the International Energy Agency (IEA), India is set to become the world’s largest driver of oil demand by 2030. Against this backdrop, diversifying energy sources and securing American supplies are seen as strategically vital for India’s long-term energy security.
The implications of this shift are significant for Russia, currently India’s largest energy supplier. With the backdrop of the Russia–Ukraine war, the Trump administration has been consistently pressuring India to scale back its dependence on Russian energy.
India’s decision to expand imports from the U.S. is being interpreted as a geopolitical signal—indicating New Delhi’s intent to diversify its energy portfolio and reduce reliance on any single source, particularly Moscow. This development is likely to cause concern for Russian President Vladimir Putin, as it may gradually erode Russia’s dominant position in the Indian energy market.
