Monday, October 13, 2025
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India’s oil and gas imports from the US jump 51%

Government-backed oil companies in talks with American suppliers to lock in long-term contracts

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NEW DELHI: India has ramped up its energy game, taking bold steps to diversify its oil sources in the midst of global uncertainty.

As October approaches, Indian Oil Corporation—the country’s most prominent oil player—has locked in orders for roughly 2 million barrels of American crude, with shipments set for autumn delivery.

The fresh influx of US oil is more than just a purchase; it’s part of a carefully calibrated balancing act that reflects both market realities and geopolitics.

Earlier this August, IOC doubled down on its strategy, securing an additional cargo of US crude for the same delivery window.

Industry sources in Singapore, referencing a Reuters report, see these moves as a direct response to heightened trade tensions: following US President Trump’s threat of additional tariffs on Indian goods, Indian importers have been quick to strengthen commercial ties on the energy front.

But the American connection is just one thread in a much wider tapestry. During August, India also took delivery of 2 million barrels per day of Russian oil—volumes locked in earlier this summer as a tactical shift away from Iraq and Saudi Arabia amid the region’s escalating instability.

LNG imports double

Data from Kpler confirms that Russian flows displaced significant cargoes from traditional West Asian suppliers, highlighting India’s readiness to pivot whenever market winds change.

Official trade numbers are even more dramatic. From January to June, India’s oil and gas imports from the US soared by 51 per cent.

On the LNG front, the demand spike is even more apparent: imports from the US nearly doubled over the past year, shooting up to $2.46 billion in fiscal 2024-25 from $1.41 billion previously.

This trend trails commitments made at the highest level. Back in February, Prime Minister Narendra Modi pledged to boost India’s US energy imports from $15 billion in 2024 to an ambitious $25 billion in 2025—a move intended to help correct the US trade deficit.

True to this spirit, government-backed oil companies have launched talks with American suppliers to lock in long-term contracts. While Russia’s cut-price oil deals have offered short-term relief, New Delhi is dead serious about spreading its bets.

India’s policymakers have been careful to point out that their Russian oil purchases remain legal and within the G7’s price cap framework. This isn’t just a matter of pragmatism—it’s a reflection of broader US policy, which permits these sales to keep the global oil market stable and prices in check.

Ironically, while some view India’s Russian oil trade with suspicion, Washington itself sees it as a safety valve that insulates global consumers from price shocks, while simultaneously capping Russia’s windfall profits.

Emerging energy partnership

The emerging energy partnership between India and the US extends well beyond trade volumes. Officials in New Delhi describe the bilateral relationship as multi-layered, emphasizing that trade is just one element in a much broader dynamic that encompasses security, diplomacy, and shared global priorities.

As evidence of this wider partnership, the government recently assured the Parliamentary Standing Committee on External Affairs that there’s “no change of plans” for upcoming high-level talks with Washington.

Hopes remain high that the sixth round of negotiations could pave the way toward a formal trade agreement—a diplomatic milestone in a relationship already rich with economic and strategic significance.

Looking ahead, India’s bold energy maneuvers are setting the stage for an era where no single country or crisis can dictate its destiny. Whether it’s deepening energy ties with the US, hedging risks with Russian oil, or carefully navigating between old alliances and new opportunities, India is making sure its future energy security is truly its own.

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