India is looking to increase its imports of American shale gas, liquefied natural gas (LNG), and crude oil as part of a strategic move to diversify energy sources and balance its growing trade surplus with the United States.

A senior Indian official, speaking anonymously, said, “There are several things we can buy from the US – for example, shale gas, LNG, crude oil. The more diversified our sources, the greater the benefit for us. Prices are also low in the US.”

This energy diversification plan aligns with India’s goal to reduce reliance on traditional suppliers while taking advantage of competitive US pricing amid America’s shale revolution. The move is expected to help narrow the bilateral trade imbalance, where India currently maintains a significant surplus.

Bilateral trade between India and the US reached USD 131.84 billion in 2024-25, with the US remaining India’s largest trading partner for the fourth consecutive year. Negotiations on a comprehensive trade agreement, aiming to more than double trade to USD 500 billion by 2030, will resume this week in Paris.

Despite uncertainties caused by US tariff policies under the Trump administration, the official emphasized India’s focus on mutual benefits: “Within the constraints of uncertainties, India has to find pathways which are good for the country.”

India has reserved the right to impose retaliatory tariffs on US steel and aluminum imports and is actively seeking World Trade Organization consultations on US tariffs affecting auto components. The official noted, “We will see what is good for India… accordingly we will take decisions.”

The expanded energy imports represent a clear opportunity for both nations: India gains a more diversified and competitively priced energy supply, while the US benefits from expanded export markets and a reduction in its trade deficit.