Disagreements between the two countries persist in several areas, ranging from trade and agriculture to the issue of Russian oil. Washington has accused New Delhi of supporting Moscow by purchasing crude oil at discounted prices, while Trump stated that Prime Minister Narendra Modi agreed to reduce Russian oil imports, a claim India has not confirmed. Nevertheless, trade talks between the two sides continue.
Petroleum and Natural Gas Minister Hardeep Singh Puri announced that the new agreement extends for a full year and stipulates the purchase of 2.2 million tons annually of LNG from the US Gulf Coast region, representing about 10% of India’s consumption. Puri described the deal as “the first organized agreement” for American gas to enter the Indian market, emphasizing that New Delhi is opening one of the fastest-growing gas markets to American producers.
This agreement follows similar steps taken by major Indian companies, including “HPCL-Mittal Energy,” which halted the purchase of Russian crude oil after US and European sanctions, as well as “Reliance Industries,” which began assessing the impact of restrictions on its dealings with Moscow.
Despite India’s strong economic growth, which reached 7.8% annually until the end of June, US tariffs continue to cast a shadow on the economic situation, with estimates suggesting a potential loss of between 60 and 80 basis points from GDP growth during this fiscal year if these tariffs are not eased soon.
