India is working on expanding energy imports from the US while pushing for reduced tariffs on its own exports, signalling a trade strategy that places energy security at the core of negotiations.
Commerce Minister Piyush Goyal, who is currently in New York, confirmed that India expects to raise its purchases of US oil and gas.
The move comes just weeks after President Donald Trump imposed 50% tariffs on Indian exports, a decision aimed partly at penalising New Delhi for continuing to buy Russian crude.
The development has added a new dimension to the evolving India-US trade relationship.
Energy trade to balance tariffs
Goyal told an event in New York that India and the US, as “close friends and natural partners,” would see energy play a growing role in bilateral trade.
The minister highlighted that the world’s third-largest oil consumer is seeking stability in supplies, and Washington is expected to have a central role in diversifying India’s energy security goals.
The Trump administration has argued that India is helping to fund Russia’s war in Ukraine by being the largest buyer of Russian seaborne crude.
The discounted barrels have allowed New Delhi to manage its import bill, but they have also triggered pressure from Washington.
By raising imports from the US, India aims to address Washington’s concerns, reduce trade imbalances, and strengthen its position in tariff negotiations.
Tariff disputes and visa restrictions
The relationship between the two countries has faced strains in recent weeks.
The 50% tariff on Indian exports upended the progress made in trade talks that had recently resumed.
These measures were followed by a $100,000 fee imposed on new H-1B visas, widely used by Indian tech workers in the US.
The visa fee has emerged as a major issue for New Delhi, given the size of India’s information technology workforce in America.
Washington’s decision to impose higher visa fees has added another layer of complexity to the already tense negotiations, raising concerns in India’s services sector.
The tensions came even after signs of a thaw when President Trump personally called Prime Minister Narendra Modi on his birthday.
That gesture briefly suggested relations were improving, but the new tariffs and visa costs have underlined ongoing differences.
Washington’s role in India’s energy shift
Goyal stressed that the US would be a “crucial” partner in India’s energy diversification strategy.
As India remains heavily import-dependent, ensuring reliable access to energy supplies is a priority.
Expanding purchases from the US would not only help balance bilateral trade but also provide a counterweight to criticism over India’s Russian crude purchases.
For Washington, the push aligns with its broader strategy of reshaping global energy flows.
By supplying more oil and gas to India, the US secures a larger role in Asia’s energy market while simultaneously attempting to limit Moscow’s revenues from crude sales.
Trade talks and future steps
Trade discussions between New Delhi and Washington remain ongoing.
While tariffs and visa issues have complicated progress, energy cooperation has emerged as a potential area of alignment.
Increasing oil and gas imports from the US is expected to be a major point in the negotiations, potentially offering India a way to offset disputes on other fronts.
India’s move also reflects a balancing act between maintaining discounted Russian supplies and deepening ties with Washington.
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