India's Strategic Energy Shift

India has dramatically increased its crude oil imports from the United States by over 50% in the first half of 2025, signaling a significant shift in its energy sourcing strategy. This surge is part of a broader expansion in energy trade between the two nations, including liquefied natural gas (LNG) and liquefied petroleum gas (LPG).

Trade Growth Amid Diplomatic Ties

The growth in bilateral energy trade comes as both countries affirm their strong diplomatic relations. Despite recent trade tensions, including tariffs imposed by the US, the energy trade sector continues to flourish, with negotiations underway for a multi-billion dollar long-term LNG supply agreement.

Challenges and Opportunities

However, the relationship faces challenges, including US tariffs on Indian goods and criticisms from former President Donald Trump. Nonetheless, the energy trade between India and the US is set to grow, with Indian companies planning to increase crude oil imports by 150% in the financial year 2025-2026.