India-US trade increased after Donald Trump became US President again, oil purchase increased by 51%

Washington. After Donald Trump became President again in January 2025, India has significantly increased its purchase of energy from America. According to the data, the amount of crude oil India bought from America in the first six months of 2025 is 51% more than last year.

This increase in energy purchases reflects India’s commitment to rebalance trade relations with the US, which is one of the major demands of the Trump administration. Imports of liquefied natural gas (LNG) have also increased significantly. LNG imports were $ 1.41 billion in FY 2023-24, which has doubled to $ 2.46 billion in FY 2024-25.

The boom is due to the agreement between Trump and Modi
The reason for this boom is an agreement between Trump and PM Narendra Modi in February 2025, in which both the leaders expressed commitment to increase energy cooperation. India has set a target to increase energy purchases from the US from $15 billion to $25 billion by 2024. Also, there is a plan to increase the total trade between the two countries from $200 billion to $500 billion by 2030.

America’s share in India’s total oil imports is now 8 percent
It was said in the joint statement that both the countries want to strengthen energy security together and make America a major energy supplier to India. According to the data, this pace has increased significantly. In the first quarter of FY 2025-26, India’s crude oil imports from the US increased by 114% to $3.7 billion, from $1.73 billion earlier. In July 2025, India bought 23% more US oil than in June. Now the share of America in India’s total oil imports has increased from 3% to 8%.

Buying LNG from America is an attractive proposition for Indian companies
Prashant Vashisht, Senior Vice President, Rating Agency ICRA, says that buying LNG from America is a very attractive proposition for many Indian companies. The first reason is that its price is based on the US ‘Henry Hub’ benchmark, which is cheaper. Second, a large number of LNG projects are coming online in the US, which means that more Indian companies will closely monitor the US market for long-term contracts.

Trump removed the Biden administration’s policy as soon as he became President
Trump removed the Biden administration’s policy as soon as he became President, which banned US gas export licenses. The US Energy Information Administration estimates that North America’s LNG export capacity will now double by 2028, with most of the increase being exported by the US.

India will overtake China by 2030
India’s growing energy purchases from the US are happening at a time when India is becoming the fastest growing country in the world for oil. It is estimated that by 2030, India will overtake China in this matter. Also, the demand for LNG in India can increase by 78% to 64 billion cubic meters.

Talks going on for long-term LNG contracts
According to another person familiar with the matter, talks are going on between India and the US on long-term LNG contracts worth billions of dollars. India’s big oil-gas companies are directly negotiating with American companies. India considers the US a reliable partner for its energy security. However, there are also some disputes over energy relations. The Trump administration is especially concerned about India’s purchase of oil from Russia. The Trump administration wants India to put pressure on Russia so that the Ukraine war can be ended, and India should reconsider buying oil from Russia.