❓WHAT HAPPENED: India signed a deal with the U.S. covering nearly 10 percent of its liquefied petroleum gas (LPG) imports.
👤WHO WAS INVOLVED: India, the United States, President Donald J. Trump, and Indian Prime Minister Narendra Modi.
📍WHEN & WHERE: Announced on November 17, 2025, with the LPG sourced from the U.S. Gulf Coast.
🎯IMPACT: The deal represents a significant win for the Trump administration, with India previously taking advantage of Western sanctions on Russia to source energy from the Kremlin at a discount.
On Monday, India‘s government announced a “significant” agreement with the Trump administration to source nearly 10 percent of its liquefied petroleum gas (LPG) imports from the United States. The move comes as India seeks to diversify its energy imports away from Russia in the face of U.S. tariffs and threatened sanctions.
Relations between India and the U.S. have been fraught since August, when President Donald J. Trump announced he would impose tariffs of up to 50 percent on Indian goods, as the country had rejected American demands that it stop taking advantage of the Western sanctions war with Russia to purchase cut-price Russian energy. U.S. officials have consistently accused India of clandestinely supporting Russia’s war efforts in Ukraine economically through these purchases.
Hardeep Singh Puri, India’s Minister for Petroleum and Natural Gas, stated that India signed a one-year deal for 2.2 million tonnes per annum of LPG from the U.S. Gulf Coast. This contract marks “the first structured contract of U.S. LPG for the Indian market.”
The Indian economy, the fifth-largest globally, has shown growth, but U.S. tariffs pose a potential risk. Experts have warned U.S. tariffs could reduce Indian GDP growth by 60 to 80 basis points.
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