US, India to hold new round of trade talks, with focus on energy

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(The Center Square) – India and the United States will resume trade talks this week in Washington, with the Trump administration seeking increased purchases of U.S. oil and gas while New Delhi wants to encourage foreign investment in its renewable and nuclear power sectors to help meet its soaring energy demand.

Talks were suspended in August after the Trump administration hiked tariffs on most India goods to 50% as a penalty for Indian purchases of Russian crude oil, which American negotiators say has prolonged the war in Ukraine.

Discussions resumed in September after U.S. President Donald Trump spoke with Prime Minister Narendra Modi on the phone as the two leaders voiced optimism they could reach a mutually beneficial trade deal.

India’s Ministry of Commerce and Industry reported the country’s exports to the United States fell to $6.86 billion in August from $8.01 billion in July, which it mainly attributed to increased U.S. import tariffs.

“We don’t want to punish India,” U.S. Energy Secretary Chris Wright said in September at a press briefing. “We want to end the war in Ukraine, and we want to grow our relations with India. America has oil to sell, so does everybody else. We wish India would work with us to buy oil from elsewhere,” said Wright.

The negotiations this week in Washington follow U.S. ambassador-designate Sergio Gor's meetings over the weekend in New Delhi with Indian Prime Minister Narendra Modi and Commerce Secretary Rajesh Agrawal, which focused on strengthening bilateral trade and investment.

"During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States," Gor wrote on 'X' on Sunday.

India is the world’s fourth-largest LNG importer, relying on imports to meet more than half its natural gas needs. The Indian government aims to increase the share of natural gas in the nation's energy mix to 15% by 2030, up from 6.5% in 2024.

In FY25, India’s main LNG suppliers were Qatar with 41% of the market, the United States at 19%, and the UAE at 13%.

India is likely to source more renewable energy technologies from the United States as part of a trade deal, a step that will help the country meet ambitious climate goals that include a net-zero target by 2070. Government officials seek to attract foreign investment in green hydrogen, electric vehicles (EVs), battery storage systems, offshore wind, and floating solar, according to government officials.

Indian energy companies such as Indian Oil Corporation, GAIL, and Bharat Petroleum are in talks with U.S. LNG exporters to secure future supply, according to news reports. GAIL now imports 5.8 million tons of U.S. LNG annually under long-term deals, split between Berkshire Hathaway Energy's Cove Point plant in Maryland and Cheniere Energy’s Sabine Pass LNG facility in Louisiana.

GAIL is also reported to be negotiating a long-term supply agreement with America’s Glenfarne, which is developing a large natural gas project in Alaska.

Wright is planning a visit to New Delhi in November to meet with top Indian energy firms, according to the Hindustan Times.

Indian negotiators aim is to finalize the first phase of a Bilateral Trade Agreement (BTA) before December and to double bilateral trade to $500 billion by 2030, as Trump and Modi agreed at a meeting in February.