During a joint briefing with Prime Minister Narendra Modi on February 13, U.S. President Donald Trump emphasized the need for “fairness” in the bilateral trade between the United States and India. He also advocated for a significant increase in the export of American crude oil and natural gas to India, highlighting the growing trade deficit between the two nations.
Trump underscored that India is poised to become a major importer of U.S. energy, stating, “They need it, and we have it.” The U.S. president’s remarks came in the wake of rising concerns about the widening trade imbalance, which, according to recent data, has surged to $37.8 billion as of November 2024, up from $31.2 billion the previous year.
An analysis by Moneycontrol reveals a notable shift in the dynamics of U.S.-India oil trade in recent years. When Trump took office, India accounted for 2.7% of U.S. crude oil exports, with the U.S. sending 140,000 barrels of the total 5.2 million barrels exported daily. By 2020, India’s share had more than doubled to 5.5%, representing 471,000 barrels of the 8.5 million barrels exported annually. However, this growth has stagnated in recent years. In 2023, India imported only 402,000 barrels of the 10.2 million barrels the U.S. exported annually.
This decline is mirrored in India’s diminishing reliance on U.S. crude oil imports. By November 2024, the U.S. accounted for just 3.4% of India’s petroleum imports, a significant drop from 4.5% in 2019. In the same period, India’s total import value for petroleum crude reached $133 billion.
Trump has long advocated for a more robust U.S. energy policy, with a particular focus on exporting more oil and gas to international markets. He has suggested that India’s growing energy needs could help address some of the trade imbalance. Despite challenges, the U.S. leader remains optimistic about the potential for expanding energy exports to India as a means to bridge the deficit.
The overall trade deficit between the two nations, once at $19 billion in 2016 when Trump first assumed office, has seen a steady increase, raising questions about how both sides can better balance their economic relations moving forward.