India and the United States are looking to strengthen their strategic energy partnership to enhance bilateral trade to a target of $500 billion by 2030, as per a report by US-India Business Council and Grant Thornton Bharat. The report highlights the significance of hydrocarbons like LNG, crude oil, LPG, ethane, and propane in fostering increased trade and promoting investments, thereby fortifying energy security and supply chain resilience for both nations. This evolving energy relationship is transitioning from a conventional buyer-seller model to a more comprehensive strategic alliance encompassing trade, investment, technology, infrastructure, and energy security.
Rahul Sharma, the Managing Director of USIBC India, emphasized the shift towards a deeper strategic integration in the India-US energy relationship, moving beyond mere transactional engagements. He stressed the unique position of India and the US to collaborate on energy, technology, and investment fronts to bolster energy security, drive economic growth, and facilitate expanded bilateral trade in the future. The report recommends three key actions to advance this partnership: enhancing the scale and value of hydrocarbon trade, establishing a favorable and predictable investment climate, and diversifying supply chains to reinforce long-term energy security.
Amit Kumar, Partner and Energy and Renewables Industry Leader at Grant Thornton Bharat, noted that the India-US energy collaboration is entering a new phase characterized by broader cooperation in investment, technology, infrastructure, and supply chains, transcending traditional commodity trade. The report identifies significant investment prospects for the US in India’s upstream exploration and production, LNG infrastructure, city gas distribution, gas-based power, and downstream petrochemical sectors. It also highlights opportunities for Indian firms to expand their footprint in the US energy industry through investments in LNG export facilities, upstream oil and gas assets, shale resources, and petrochemical feedstock chains.
Additionally, the report suggests the establishment of an India-US AI-Powered Energy Task Force to expedite the adoption of advanced technologies in the hydrocarbon domain. The task force’s focus areas include AI-driven energy forecasting, seismic interpretation, exploration optimization, predictive maintenance, and digital twin technologies for real-time asset monitoring and operational efficiency.
