Kathmandu. India has signed a “significant” annual agreement with the US to ensure about 10 per cent LPG supply. This is an important step towards sustainable diversification of energy sources by India.

Relations between the two countries escalated after US President Donald Trump raised tariffs on India to 50 per cent in August. The situation became more sensitive after US officials accused India of indirectly supporting Russia’s war in Ukraine.

President Trump has claimed that Indian Prime Minister Narendra Modi has agreed to cut Russian crude oil imports as a precondition for a potential trade deal, but India has not officially confirmed his claim. Talks between New Delhi and Washington continue to cease, despite differences on a range of issues ranging from agricultural trade to buying Russian oil.

Meanwhile, India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri said that a one-year structured agreement has been signed to supply 22 lakh tonnes of LPG annually from the US Gulf Coast. According to him, such an agreement is the first of its kind between India and the US in the LPG sector.

“India is continuously diversifying its resources to ensure safe and affordable LPG available to its citizens. The world’s largest and fastest-growing LPG market — the United States — has officially opened for the Indian market. ’

In October, HPCL-Mittal Energy suspended its purchase of crude oil from two major Russian companies following US sanctions. Reliance Industries, a major private buyer in India, said it was evaluating the potential impact of US and European Union (EU) sanctions.

India, the world’s fifth-largest economy, posted its fastest five-quarter economic growth in the quarter ended June 30, driven by higher government spending and improved consumer confidence. However, the US tariff hike continues to put pressure on India’s overall economy. Economists expect a 60-80 basis point weakening of the GDP growth rate in the current fiscal year if there is no concession or agreement soon