Is India Ready to Increase Energy Imports from the US?
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Synopsis
In a significant move, India may boost its energy imports from the US amid ongoing trade talks. Despite a 50% tariff increase, India's exports to the US saw a remarkable rise, indicating resilience in trade relations. As negotiations progress, India aims to diversify its energy sources and strengthen its bilateral ties with the US.
Key Takeaways
- India's exports to the US increased by 13.3%.
- Potential energy imports from the US could reach $12-$13 billion.
- The tariff hike poses challenges, but resilience in trade is evident.
- India aims to source renewable energy technologies from the US.
- High-level discussions are ongoing to strengthen bilateral relations.
New Delhi, Oct 15 (NationPress) In spite of the 50 percent tariff increase enforced by the Donald Trump administration, India's exports to the US surged to $45.82 billion in the first half of the current financial year (April-September), marking a 13.3 percent rise compared to the same period last year, which stood at $40.42 billion.
The Commerce Ministry has revealed that India is positioned to import more crude oil and natural gas valued at $12-$13 billion from the US, all while keeping the refineries' configuration intact. The government is eager to broaden the nation's energy import portfolio, depending on availability at competitive prices.
Sources within the government have indicated that India's Chief Negotiator, Rajesh Agrawal, is set to depart for the US on Wednesday, with the negotiation team already engaged in discussions regarding bilateral commitments.
Regarding the India-US trade negotiations, the Commerce Ministry pointed out that the US is currently experiencing a shutdown, resulting in a diminished workforce, which is not ideal for extensive negotiations at this time.
The Commerce Ministry also mentioned that while there is substantial dialogue between both nations, it is encouraging to observe that exports have remained stable amidst global uncertainty, with the industry maintaining business relationships and supply chains while managing costs. Recently, the US Ambassador designate to India met with India's top leadership.
Moreover, the Commerce Ministry noted that the effect of tariffs on India-US trade will be analyzed based on commodity-specific data, with a likely impact on sectors facing 50 percent tariffs. The trade data for October is anticipated to provide a clearer picture. Although India is performing better in exports to the US compared to last year, certain supply chain segments are encountering trade challenges.
India is also expected to acquire more renewable energy technologies from the US as part of the trade agreement, a move that will assist the country in combating climate change.
This development coincides with the appointment of new US Ambassador Sergio Gor at the US embassy in New Delhi.
Gor recently met with Prime Minister Narendra Modi to discuss various bilateral matters, including defense, trade, and technology. The significance of critical minerals for both nations was also a topic of discussion during their meeting.
Point of View
It is imperative to highlight that India's approach to amplifying energy imports from the US signifies a strategic shift towards diversifying its energy portfolio. While challenges persist, the ongoing dialogue reflects a commitment to strengthening bilateral relations, essential for both nations' economic growth.
NationPress
15/10/2025
Frequently Asked Questions
What impact will the tariff hike have on India-US trade?
The tariff hike is expected to affect certain sectors, particularly those facing 50% tariffs. However, India has shown resilience in exports despite these challenges.
How much energy is India planning to import from the US?
India is looking to import crude oil and natural gas worth $12-$13 billion from the US, aiming to diversify its energy imports.
What role does renewable energy play in the trade discussions?
India is likely to source more renewable energy technologies from the US, which is part of the broader trade package aimed at combating climate change.
