US Aims to Increase Energy Exports to India Amid Ongoing Crises
The US government is keen to enhance energy exports to India, according to the US ambassador, Sergio Gor, who shared this information during a call on Wednesday. This announcement comes right before Secretary of State Marco Rubio embarks on a multi-day visit to the world’s most populous nation.
Ambassador Gor noted that India is eager to diversify its energy sources, indicating a growing interest in purchasing more energy from the United States. “People in India have been very receptive to buying from us, and we’re pleased with the response,” he stated.
This focus on energy exports is significant as India faces challenges due to a prolonged conflict in the region. The ongoing war involving Iran has led to the closure of the Strait of Hormuz, a crucial route for global energy supplies. This situation has contributed to a significant hike in Brent crude oil prices, which have surged over 50% since the conflict began.
When asked about India’s position amid these developments, Gor emphasized that the situation is primarily due to Iran’s actions, clarifying that the US should not be held accountable. He also mentioned that the US Treasury Department has permitted India to continue buying Russian oil, which would typically face sanctions.
Before the conflict, India relied heavily on the Strait of Hormuz for its liquefied petroleum gas (LPG) imports, with around 90% of its supply coming from this narrow waterway.
Rubio’s visit is expected to center on energy security as well as trade and defense partnerships. Gor mentioned that Rubio will meet with officials from the Quad alliance, consisting of the US, India, Japan, and Australia, predicting that former President Trump might visit India again following his first trip in 2020. “Our aim is to showcase how crucial this relationship is for both countries,” Gor remarked.
Details regarding the Quad discussions remain under wraps, but Gor highlighted interests in technology-sharing and military sales between the US and India.
The four-day trip to New Delhi, Kolkata, Agra, and Jaipur marks a shift for Rubio, who typically visits countries for shorter durations due to his dual role as the top US diplomat and National Security Advisor under Trump.
Gor, who previously managed the hiring of political appointees during the Trump administration before becoming ambassador, has worked to address US-India tensions since arriving in New Delhi in January.
Ties have been tested in the past, including Trump’s claims of mediating disputes between India and Pakistan, which India disputed. Tensions were also raised when the US imposed a 25% tariff on Indian goods due to oil purchases from Russia, amid Western efforts to pressure Moscow over its actions in Ukraine. However, with the recent energy crisis stemming from the Iran conflict, the dynamic has shifted, allowing India to continue its Russian oil purchases.
Since his arrival, Gor has played a role in facilitating discussions that led to an interim deal aimed at reducing tariffs on Indian goods, with expectations that further agreements will be finalized soon. He also pointed out that Indian companies have recently announced $20.5 billion in investments in the US, primarily in the pharmaceutical sector.
