Trump and Modi aim for U.S. to become India's top oil and gas supplier
- India aims to double LNG imports by 2030 to address energy demands.
- The U.S. and India are discussing making the U.S. a primary gas supplier to India.
- Strengthened energy ties may help bridge the trade gap and enhance bilateral relations.
India is poised to double its liquefied natural gas (LNG) imports by 2030, a crucial move to address its growing energy demands and to reduce its dependency on coal and oil. Analysts estimate that this expansion will be beneficial for the United States in bridging the ongoing trade deficit between the two nations. Currently, India's natural gas consumption is expected to surge, driven largely by governmental policy targeting a rise in the gas supply's share of the energy mix from 6.7% at the end of 2023 to 15% by 2030. A supportive rise in domestic gas production, alongside the anticipated influx of U.S. LNG, is expected to satisfy the burgeoning energy requirements of India's economy. U.S. President Donald Trump recently unveiled plans for reciprocal tariffs that impact countries imposing duties on American goods. India, facing high tariff rates, represents a significant challenge to U.S.-India trade relations, particularly as India has a growing trade surplus with the United States estimated at $35 billion. During a meeting between Trump and Indian Prime Minister Narendra Modi in Washington, both leaders acknowledged the potential of U.S. LNG exports to mitigate India’s energy needs while simultaneously addressing the wider trade gap. In conjunction with the energy discussions, British ministers are set to reignite trade negotiations with India after recent pauses due to visa disagreements. Jonathan Reynolds, the business secretary, is scheduled to meet with Piyush Goyal, India’s commerce minister, aiming for a more detailed trade deal. The British agenda centers around demands for reduced tariffs on various products, including food and vehicles. Addressing India's burgeoning economy, which is projected to become the third-largest by 2050, British firms are particularly interested in expanding into services, including accountancy and technology, which could further enhance economic ties between the nations. While India’s push for a gas-based economy may foster stronger commercial relations with the U.S., it also contends with the projected tightness of the global gas market due to increasing winter demand and heightened geopolitical tensions affecting gas supplies. The implications of these negotiations may extend beyond trade and energy considerations, impacting future geopolitical landscapes amid changing energy demands globally.