India Considers Fixed Quota for U.S. Oil Imports Amid Trade Deal Talks

20 Mar 2025

India is exploring the possibility of setting a fixed quota for crude oil imports from the United States as part of upcoming trade negotiations. The move is aimed at securing long-term energy supplies while strengthening economic ties between the two nations. As the Indian government prepares for high-level trade discussions, officials are evaluating the potential benefits of locking in a steady volume of U.S. crude imports. This could provide energy security, diversify India’s oil sourcing, and offer pricing stability amid global market fluctuations.

The U.S. has become a key supplier of crude oil to India in recent years, complementing imports from traditional sources like the Middle East. A structured import agreement could further enhance bilateral trade while ensuring competitive pricing for Indian refiners. Experts believe that including energy trade in broader trade negotiations could help India balance its trade deficit with the U.S. and gain favorable terms in other sectors such as technology and defense. The discussions are expected to progress in the coming months, with both sides looking to finalize a mutually beneficial framework.