India-US trade potential: Targeting $500 billion in energy cooperation

India-US trade potential: India and the US stand at the cusp of a sea change in their trade relationship where projections are replacing the current figure of $200 billion with more than half a trillion. The energy sector, without any pause, proclaims this dream with huge collaborations on the cards that can mark the entry into a new era of bilateral relations.

But the political winds on the domestic front are also quite pertinent to be noted. Former US President Donald Trump recently came out in a clarion speech critical of India over its import tariffs, terming it "an abuser" while appreciating Prime Minister Modi. Though Trump is going to meet Modi soon, the economic talks on trade policies will gain momentum and may shape up the course of bilateral relationships in the days to come.

More Energy Trade

India's sixth-largest energy trade partner is the United States. Hydrocarbon trade has surged to $13.6 billion by 2023-24, almost double the number of 2018-19. Recent discussions held at the Gastech conference show hydrocarbon trade reached an amount of $2.43 billion during the initial months of FY 2024-25, which presents a robust momentum and mutual commitment from both sides to elevate their energy partnership.

Clean Energy Initiatives

One of the flagship initiatives under the US-India Strategic Clean Energy Partnership is aligned with future cooperation and orientated toward sustainable practices. Its involvement under the G20 Presidency it hosted includes launching the Global Biofuels Alliance, which is part of collective work at low-carbon solution development in partnership with countries like the US.

Climate Issues Cooperation

Discussions with US officials have been profoundly insightful into how the challenge to India is singular because, after all, it is the world's third-largest hydrocarbon consumer that plans to cut its emissions to net zero by 2070. And thus, a list of critical solutions was identified in order to make sure energy security would continue to go hand-in-hand with emissions cuts; from CCUS, or carbon capture, utilisation, and storage to advanced hydrogen and geothermal energy technology.

Investment opportunity

Indeed, several industry majors like Vitol and Baker Hughes have invited investment into the state, which should ensure that the ever-growing demand for energy from India would be met through sustainable sources. For themselves, all such talks of investments essentially refer to a bilateral agreement on the mutual exploitation of modern technologies and innovative ideas, which would turn energy efficiency into a sustainable source.

He will talk at the 'Summit of the Future' at the United Nations General Assembly, address the Indian community in New York, and strengthen bonds further between the two nations. The moment is crucial for Indo-US relations and is all geared to energise collaboration in energy and beyond to propel a sustainable future.