India has significantly increased its crude oil imports from the United States since the beginning of the current US presidential term, marking a notable shift in its energy procurement strategy. This surge comes despite recent US tariffs imposed on Indian goods, with Indian firms reportedly expanding their energy engagement with the US.
Government sources indicate that crude imports from the US surged by 51% between January and June 2025 compared to the same period last year. This trend has been particularly pronounced, with the April to June 2025 quarter showing an even steeper year-on-year increase of 114%. In financial terms, the value of these imports has more than doubled, rising from $1.73 billion in the first quarter of FY 2024-25 to $3.7 billion in the corresponding period of FY 2025-26. The momentum continued into July, with imports increasing by 23% compared to June, pushing the US share in India’s overall crude imports from 3% to 8%.
This energy shift is occurring amidst rising geopolitical tensions, particularly as the US President has criticised India’s trade practices and imposed a 25% tariff on all Indian goods starting August 1 (Friday). Despite these trade challenges, Indian companies are projected to increase their crude oil imports from the US by 150% in the financial year 2025-26.
The expanded energy trade extends beyond crude oil to other products, with India’s imports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from the US also rising sharply. LNG imports nearly doubled in FY 2024-25, and discussions are reportedly underway for a major long-term LNG contract.
The Ministry of External Affairs spokesperson recently emphasised the resilience of the partnership between New Delhi and Washington, stating that “India and the United States share a comprehensive global strategic partnership anchored in shared interests, democratic values, and robust people-to-people ties. This partnership has weathered several transitions and challenges. We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward.”
This increasing energy cooperation highlights India’s approach to diversifying its energy basket and maintaining stable diplomatic and economic relations, even amidst trade disputes.
