In a dramatic shift that signals India’s evolving approach to securing its long-term energy needs, the country has significantly scaled up its crude oil and liquefied natural gas (LNG) imports from the United States, according to multiple sources familiar with the energy trade between the two countries.
Driven by both geopolitical realignments and economic strategy, this surge in American energy imports follows the return of Donald Trump to the White House in January 2025 and builds on a growing bilateral trade momentum between the two democracies.
A 51% Jump in U.S. Crude Oil Imports Reflects Growing Dependence on Western Energy Supplies
Between January and June 2025, India’s crude oil imports from the U.S. rose by a staggering 51% compared to the same period last year.
This jump underscores New Delhi’s commitment to rebalance trade relations with Washington, a core demand of the Trump administration.
Liquefied natural gas imports from the U.S. have nearly doubled in value, increasing from $1.41 billion in FY 2023–24 to $2.46 billion in FY 2024–25, showcasing India’s rapid pivot to alternative sources of energy amid rising global prices and mounting diplomatic pressure to reduce reliance on Russian fuel.
The spike follows a landmark February 2025 summit in Washington, where Prime Minister Narendra Modi and President Donald Trump reaffirmed their resolve to elevate energy cooperation as a pillar of the broader U.S.–India strategic partnership.
“Both leaders pledged to expand bilateral energy trade, with India committing to increase American energy imports to $25 billion in 2025, up from $15 billion in 2024. A new bilateral trade goal of $500 billion by 2030 was also set,” a joint statement noted at the time.
July Surge and Market Dynamics: U.S. Crude Share in India Rises to 8%
Recent data from Indian customs and energy analysts confirms the trend has accelerated further in July 2025. That month alone, India increased its crude purchases from the U.S. by 23% compared to June, taking the American share in India’s total crude imports from 3% to 8% in just one month.
“This is no longer a marginal trend. The U.S. is now emerging as a top-tier supplier of oil and LNG to India,” said a trade official tracking the numbers.
In the first quarter of FY2025–26, India imported $3.7 billion worth of crude oil from the U.S., more than double the $1.73 billion recorded during the same period in the previous fiscal year.
American LNG Finds a Firm Foothold in India’s Energy Mix
U.S. liquefied natural gas, priced competitively using the Henry Hub benchmark, is proving especially attractive for Indian companies seeking long-term contracts and price stability. According to Prashant Vashisht, Senior Vice President at ICRA Ratings, American LNG is not only cost-effective, but also highly reliable due to the sheer number of new export terminals being constructed across North America.
“The LNG boom in the U.S. is creating major opportunities for importers like India. We’re witnessing a shift in long-term energy strategy, and the U.S. has become a preferred partner for sourcing,” Vashisht explained.
This development aligns with Washington’s broader energy policy goals under Trump 2.0. Soon after returning to office, Trump reversed the Biden administration’s moratorium on approving new LNG export licenses. The U.S. Energy Information Administration now predicts that North America’s LNG export capacity will double by 2028, with the United States contributing the lion’s share.
India’s Energy Appetite Is Growing — and So Is Its Strategic Leverage
According to the International Energy Agency (IEA), India is on track to overtake China as the world’s largest driver of oil demand growth by the end of the decade.
LNG demand is projected to jump by 78% to reach 64 billion cubic meters annually by 2030, further incentivizing long-term tie-ups with trusted suppliers like the U.S.
Indian oil and gas majors are already in advanced talks with American companies to sign multi-billion dollar contracts that could span decades, according to officials privy to these negotiations.
“India views the U.S. as one of its most reliable and future-ready partners in securing long-term energy security,” one senior official noted. “This is not just about buying oil. It’s about building a framework for resilient, rules-based trade in an increasingly turbulent world.”
Tensions Over Russia Continue to Simmer in the Background
Despite this growing U.S.–India energy synergy, the Trump administration continues to press India on its longstanding energy ties with Russia.
India has been among the largest buyers of discounted Russian crude since the outbreak of the Russia–Ukraine conflict in 2022, raising eyebrows in Washington and other Western capitals.
President Trump, in his recent public statements, called on India to reconsider its Russian energy ties as part of a broader effort to isolate President Vladimir Putin.
However, Indian officials and experts maintain that India’s energy policy is pragmatic and market-driven, not ideological.
“Indian companies, both state-owned and private, make independent procurement decisions based on price and availability,” said Ashok Malik, Partner at The Asia Group and former adviser to the Ministry of External Affairs.
“Whether the crude comes from Russia, Spain, UAE, or the U.S., what matters most is cost and strategic reliability.”