finalizedIndia has finalised a major energy agreement that will allow the United States to supply nearly 10% of New Delhi’s annual liquefied petroleum gas (LPG) imports, marking a significant shift in its fuel sourcing strategy.
The announcement comes at a tense moment in India–US relations, which deteriorated in August after President Donald Trump raised tariffs on Indian goods to 50%, accusing India of indirectly supporting Russia’s war effort by purchasing discounted Russian crude.
—aDespite friction over issues ranging from agricultural trade to Russian oil, both nations continue negotiating a broader economic package. Trump has claimed that Prime Minister Narendra Modi agreed to reduce Russian oil imports as part of ongoing discussions — a claim India has not confirmed.
—marksPetroleum Minister Hardeep Singh Puri said the one-year agreement—covering 2.2 million tonnes of LPG from the US Gulf Coast — marks the first structured long-term US LPG contract for the Indian market. He added that India is expanding and diversifying its energy suppliers to ensure affordable fuel for its population.
India’s shift comes after HPCL-Mittal Energy stopped buying Russian crude due to US sanctions, while Reliance Industries is reassessing the impact of both American and EU restrictions.
Meanwhile, India’s economy—the world’s fifth largest—recorded its fastest growth in five quarters in the April–June period, supported by strong consumer demand and increased government spending. However, economists warn that the steep US tariffs could reduce GDP growth by 60 to 80 basis points this fiscal year if no relief is provided.
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