In the first quarter of the 2026-27 fiscal year, India significantly increased its imports of petroleum products from the United States, with a notable 254% year-on-year rise to $2.60 billion. This surge was primarily driven by imports of liquefied petroleum gas (LPG). In contrast, India’s crude oil imports from the US experienced a sharp decline, falling 57.5% to $1.57 billion during the same period, according to government data.
LPG, or cooking gas, is a variable mix of propane and butane. Oil marketing companies often import the two components separately in liquid form.
The rise in LPG imports during April-June was partly driven by global energy supply disruptions linked to the war in West Asia, particularly disruptions affecting supplies from the Gulf region, experts said, requesting anonymity.
The commerce ministry has convened a meeting of industry associations and export promotion councils on Tuesday to discuss ways to boost India’s exports, including the country’s trade performance with the US, they said. India’s crude oil imports from the US fell from $3.70 billion in April-June 2025 to $1.57 billion in April-June 2026, according to the latest available granular data. India’s cumulative merchandise exports in the first four months of the current financial year, April-July 2026, rose more than 17% to $173.78 billion, and a similar double-digit annual growth rate is expected for August, according to people familiar with the matter.
Experts said fluctuations in crude imports are driven by the commercial considerations of Indian refiners. Experts and people familiar with the matter said India’s overall exports have continued to show an upward trend, aided by trade diversification, a country-specific approach and greater focus on individual products. They said there was considerable scope to expand both exports to and imports from the US.
G20 Trade Ministerial: Key Discussions Expected
Commerce Minister Piyush Goyal is set to visit the United States for the G20 Trade Ministerial in Milwaukee, which begins on September 30. During this two-day event, bilateral discussions between the trade ministers of India and the US are anticipated, according to sources familiar with the matter. This meeting could pave the way for enhanced trade relations between the two nations.
