New Delhi, Sep 1: In a recent post on Truth Social, US President Donald Trump criticized India’s trade policies, labeling the economic relationship between the two nations as “totally one-sided.” However, the reality is that India has significantly increased its purchases of oil and gas from the United States, responding to commitments from New Delhi to address the growing trade deficit.
Trump stated, “What few people understand is that we do very little business with India, but they do a tremendous amount of business with us. They sell us massive amounts of goods, being their biggest ‘client’, but we sell them very little.” While he mentioned India’s reliance on Russia for energy and defense equipment, he overlooked that India’s oil and gas imports from the US surged by 51% from January to June of this year.
India and the US have been reinforcing their defense ties since Trump took office, as acknowledged in a Pentagon statement earlier this July. In a prior meeting in Washington, Prime Minister Narendra Modi assured Trump that India would boost energy imports from the US to $25 billion by 2025, up from $15 billion in 2024, with a view to decreasing the US trade deficit. Following this, Indian state-owned oil and gas firms have engaged in talks for more long-term energy contracts with American companies.
Official data reveals that India’s imports of oil and gas from the US have indeed escalated. Liquefied natural gas (LNG) imports from the US almost doubled, climbing to $2.46 billion for the financial year 2024-25, compared to $1.41 billion in 2023-24. The Indian Oil Corporation, the country’s leading oil firm, ordered around 2 million barrels of oil in August for delivery in October. Additionally, reports indicate that India’s top refinery has also pursued a purchase of 5 million barrels of West Texas Intermediate crude for delivery this October and November.
Despite Trump mentioning India’s defense acquisitions from Russia, such transactions have not hindered India-US relations; Washington recognizes these ties stem from historical geopolitical factors. On the defense front, Indian Defense Minister Rajnath Singh and US Secretary of Defense Pete Hegseth agreed to solidify a 10-year framework aimed at expanding defense and strategic relations between the two nations. The Pentagon confirmed that the two discussed major pending US defense sales to India and the necessity for close defense industrial cooperation.
The two leaders noted the significant progress made towards defense goals established in a joint statement from February 2025. Singh urged Hegseth to speed up the delivery of GE F404 engines intended for the Tejas Light Combat Aircraft, while also advocating for the swift finalization of a proposed deal involving joint production of F414 jet engines in India with US defense giant GE Aerospace.
During their February meeting, Modi and Trump reaffirmed the India-US Comprehensive Global Strategic Partnership, unveiling crucial initiatives in defense, trade, energy, and technology. Highlights from their discussions included the US-India COMPACT framework, substantial defense procurements, and the TRUST initiative focused on AI, semiconductors, and space. The two nations also set an ambitious target for trade to reach $500 billion by 2030.
Moreover, Trump’s comments fail to acknowledge the structural nature of trade, where India serves as a key supplier of affordable generic medicines to US consumers, contributing to lower healthcare costs. Additionally, India’s rapidly expanding commercial airlines are significant customers for Boeing, amid rising competition from European rival Airbus.
Original Source: https://theshillongtimes.com/2025/09/01/trumps-anti-india-tirade-on-trade-overlooks-key-facts/
Category: NATIONAL,News Alert
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Publish Date: 2025-09-01 21:55:00
