Soaring US Crude
The data shows a notable increase in India's crude oil imports from the United States during 2025. Specifically, from January to June 2025, there was a 51%
rise in these imports. In terms of volume, this meant a climb from 0.18 million barrels per day (mb/d) during the same period the previous year to 0.271 mb/d. The upward trend accelerated in the April-June quarter, where imports from the US experienced a substantial year-on-year jump of approximately 114%. This growth was also reflected in the financial aspects, with the value of these imports more than doubling, moving from $1.73 billion in the first quarter of FY25 to $3.7 billion in the corresponding period of FY26. Further extending into July, the momentum continued, with volumes increasing by 23% compared to June, boosting the US share in India’s overall crude imports from 3% to 8%, according to a report by _Business Today_.
Beyond Crude Oil
The expansion of energy trade between India and the US extended beyond just crude oil. India's purchases of American liquefied petroleum gas (LPG) and liquefied natural gas (LNG) also saw considerable increases. LNG inflows nearly doubled in FY25, reaching $2.46 billion compared to $1.41 billion in FY24. This diversification indicates a strategic move towards securing various energy resources from the United States. The trend underscores a broader effort by India to diversify its energy sources and strengthen its energy security. These developments signal a growing interdependence and a strengthening of the energy partnership between the two countries.
Future Trade Prospects
Union Commerce and Industry Minister Piyush Goyal expressed expectations of a further increase in energy trade between India and the US in the coming years. He made this statement during the US-India Strategic Partnership Forum in New York. _ANI_ reported earlier in the year, citing sources, that Indian companies planned to increase crude oil imports by 150% in the financial year (2025–26). This indicates a positive outlook and a strategic vision for the future of energy cooperation. These planned increases suggest a continued commitment to expanding energy trade and strengthening the relationship between India and the US. The minister's comments and reports underscore the strategic importance of energy trade in the broader context of the bilateral relationship.
India's Role & Talent
Minister Goyal highlighted India's contribution to US growth by pointing out the significant talent and innovation that India offers, particularly from its engineers and graduates. He emphasized that India provides support for US corporate growth by offering solutions for research and development and new ideas. Goyal’s remarks touched upon the role of Indian talent in powering the growth plans of the US and other global entities. He indicated the importance of skilled Indian professionals in supporting global innovation and economic expansion. Furthermore, he underscored the value of a collaborative approach in the global economy, emphasizing the mutual benefits of partnerships.
CBAM and Trade Concerns
Piyush Goyal voiced concerns regarding the European Union's Carbon Border Adjustment Mechanism (CBAM), suggesting it could isolate Europe and harm its economy. He advocated for a focus on securing critical mineral supplies and diversifying sources rather than resorting to unilateral measures. Goyal viewed CBAM as a form of “green protectionism” that could fuel inflation within Europe. He pointed out that while the EU could choose its path, the global pushback against CBAM, combined with the US's different approach to climate action, could make it difficult for Europe to defend the mechanism without disrupting global trade. Goyal believes such unilateral measures would end up weaponizing trade and damaging global economic cooperation.
