India Plans Expansion of U.S. Oil and Gas Imports Amid Tariff and Visa Disputes
Los Angeles/Sep 24, 2025
NRIpress.club/Ramesh/A.Gary Singh
India is preparing to expand its imports of oil and gas from the United States while simultaneously pressing Washington to ease tariffs on Indian goods. The strategy reflects New Delhi’s focus on energy security as a central part of ongoing trade talks.
Commerce Minister Piyush Goyal, speaking in New York, confirmed that India intends to increase its energy purchases from the U.S. The announcement comes in the wake of President Donald Trump’s decision to impose 50% tariffs on Indian exports — a move partly designed to punish India for maintaining oil trade with Russia.
The development has added a new layer to India–U.S. trade relations, which are already strained. Energy, however, is now being positioned as a tool to balance tariff disputes. Goyal described the U.S. and India as “close friends and natural partners,” noting that American supplies would play a growing role in India’s diversification efforts.
Washington has criticized India for continuing to import discounted Russian crude, arguing that it indirectly supports Moscow’s war in Ukraine. By shifting some of its purchases to the U.S., India hopes to ease those concerns, address trade imbalances, and gain leverage in tariff negotiations.
At the same time, other disputes have deepened tensions. The tariff hikes were quickly followed by a $100,000 fee on new H-1B visas, a system relied on heavily by Indian IT professionals. The visa costs have alarmed India’s services sector and complicated talks further, despite Trump’s recent birthday call to Prime Minister Narendra Modi, which briefly hinted at improved relations.
Goyal emphasized that the U.S. will be a “crucial partner” in India’s long-term energy strategy. As the world’s third-largest oil consumer, India remains heavily dependent on imports and sees American energy as a means to stabilize supplies, reduce reliance on Russia, and strengthen its negotiating position with Washington.
Trade discussions between the two countries are still underway. While tariffs and visas remain contentious issues, energy cooperation is emerging as a possible area of convergence. By purchasing more U.S. oil and gas, India seeks to strike a balance between securing affordable energy, managing geopolitical pressures, and advancing its broader trade agenda.
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