US to Become India's Top Oil Supplier Under New Trump-Modi Deal

President Donald Trump and Indian Prime Minister Narendra Modi have reached an agreement that will see the US supplant Russia as India's primary oil supplier, Nikkei Asia reports. The deal, announced Thursday at a joint press conference in Washington, also includes significant increases in US military sales to India and paves the way for the sale of F-35 stealth fighters.

Trump highlighted the substantial US trade deficit with India, which reached $45.6 billion in 2024, and emphasized the role of energy exports in addressing this imbalance. He stated, "The prime minister and I also reached an important agreement on energy that will restore the United States as a leading supplier of oil and gas to India, hopefully their number one supplier."

India currently sources its oil primarily from Russia, Iraq, Saudi Arabia, and the UAE, with the US currently holding the fifth position. The new deal aims to significantly alter this dynamic.

The agreement also includes a substantial increase in US military sales to India, starting this year. Trump announced, "We're also paving the way to ultimately provide India with the F-35 stealth fighters." The F-35, a highly advanced fifth-generation stealth fighter, has only been offered to a select group of 19 nations globally.

Modi, for his part, stated that the two nations have set a target of more than doubling bilateral trade to $500 billion by 2030. He highlighted the focus on energy trade to ensure India's energy security. He also emphasized the importance of the Quadrilateral Security Dialogue (Quad) for regional cooperation and the upcoming Quad summit to be held in India, stating, "We will work together to enhance peace, stability and prosperity in the Indo-Pacific. The Quad will play a special role in this."

The announcement of this deal follows Trump's recent announcement of reciprocal tariffs on goods imports from trading partners, including India, which he had previously characterized as "a very hard place to do business in, because of the tariffs." The US administration, however, views India as a crucial partner in its Indo-Pacific strategy.