India has the potential to acquire an extra $15 billion in oil from the United States, a senior official from the commerce ministry confirmed on Wednesday. The announcement underscores New Delhi’s intent to accelerate trade discussions and finalize a deal promptly.
Recent data highlights a rising trend in energy imports from the US. Trade Secretary Rajesh Agrawal stated that India’s purchases averaged $12-$13 billion in FY25, but with the current refinery setup, there is room to increase this by another $14-$15 billion.
The initiative aims to help bridge India’s $42.7 billion trade surplus with the US and address concerns from President Donald Trump, who imposed a 50% tariff on India, partly in response to its continued purchase of Russian oil. Indian representatives are currently in the United States for negotiations and hope to conclude an agreement as early as next month, according to Bloomberg News.
India’s broader trade strategy involves reducing the surplus by acquiring more American goods, expanding market access for US companies, and easing trade barriers. The government is reportedly considering around $40 billion worth of major acquisitions, including defense equipment and oil imports, to narrow the imbalance.
Agrawal noted that Indian industries have shown resilience, absorbing some costs due to higher tariffs while keeping supply chains intact. Despite these challenges, India’s exports climbed 6.7% year-on-year in September, even as the US enforced its steepest tariffs in Asia on Indian goods. However, India’s trade deficit reached $32.15 billion, the largest in over a year, highlighting the need for strategic purchases and negotiations to maintain economic stability.
