India’s 270% US Oil Import Surge Signals Strategic Shift Ahead of Trade Deal

By Amar

Synopsis : India’s crude oil imports from the US soared over 270% in the first four months of 2025 as Delhi ramps up American imports ahead of the proposed interim trade deal. This strategy helps diversify India’s energy sources while addressing the US trade deficit concerns amid a volatile global landscape.



India’s 270% US Oil Import Surge Signals Strategic Shift Ahead of Trade Deal


India is stepping on the gas, literally, as its oil imports from the United States skyrocketed over 270 per cent year-on-year during January-April 2025. According to the latest DGCIS data, India imported 6.31 million tonnes of US crude in this period, sharply up from 1.69 million tonnes a year ago, pushing the US share in India’s total oil imports to 7 per cent, up from 2 per cent last year.



In value terms, imports rose to $3.78 billion, reflecting not just volume increases but also price fluctuations in the global oil market. This surge aligns with India’s broader strategy to diversify energy imports, enhance energy security amid West Asia tensions, and leverage competition among suppliers for better pricing, especially as India relies on imports for over 88 per cent of its crude needs.



Simultaneously, India and the US are in the final phase of negotiating an interim trade deal, targeted by July 9, which is expected to open Indian markets further to American goods, including cars, defence equipment, and agricultural products. In April alone, India’s imports from the US jumped 63 per cent year-on-year to $5.24 billion, narrowing the goods trade surplus with Washington to $3.1 billion.



President Donald Trump, during Prime Minister Modi’s recent US visit, emphasised making the US a leading oil and gas supplier to India, a move aimed at bridging the trade deficit while strengthening energy ties. With the US now accounting for 12 per cent of India’s crude imports in April 2025, up from 4.6 per cent a year ago, the numbers reflect not just a transaction but a recalibration of India’s energy and geopolitical strategy in a shifting global order.



Disclaimer : This article is for informational purposes only and does not constitute investment or trading advice. Readers should consult their financial advisors before making investment decisions.


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