India Eyes Increased Energy Imports From US, Piyush Goyal Says As Negotiations Pick Up

Commerce and Industry Minister Piyush Goyal on Wednesday said India will expand energy trade with the United States as part of its long-term energy security goals, calling Washington a key partner in shaping the country’s transition strategy.

Speaking at a US-India Strategic Partnership Forum (USISPF) event in New York, Goyal underlined that "India is a big importer of energy from across the world, including the US. We expect to increase our trade on energy products with the US in coming years."

He added that India’s energy security goals will "have a very high level of US involvement", opening "limitless possibilities" for the bilateral partnership.

The commentary from Goyal comes weeks after the US imposed an additional 25% tariff on India for purchasing Russian oil and defence equipment, while also accusing the country of fueling Russia's war on Ukraine.

The minister also hinted at scaling up nuclear energy collaboration with the US, though he acknowledged that cost challenges remain. Beyond conventional energy, Goyal highlighted cooperation opportunities in hydrogen, green ammonia, ethanol blending and flexi-fuel engines, while inviting global data centres to set up base in India.

On Europe’s Carbon Border Adjustment Mechanism (CBAM), Goyal struck a cautionary note, warning against conflating trade with climate change action. "That has serious risks of dissuading countries to join in addressing challenges of climate change," he said, describing CBAM as a form of "green protectionism." The EU, he argued, "might hurt their own economy" and could find it difficult to "come out of this trap in an honourable fashion."

India, he stressed, supports aligning regulatory frameworks globally to enable smoother energy flows, instead of creating trade barriers.

The minister also flagged India’s broader ambitions to integrate with global grids, noting that discussions are on with Singapore, Australia, the Middle East and Europe on power connectivity, including via undersea cables.

Goyal’s remarks come as India and the US accelerate trade talks following Washington’s new tariff regime, with energy emerging as a pillar for future cooperation.