India Considers Removing Taxes on U.S. Liquefied Natural Gas to Boost Imports

India is considering removing import taxes on U.S. liquefied natural gas to boost imports and reduce its trade surplus with the U.S.

India is seeking to expand energy purchases from the U.S. as U.S. President Donald Trump has imposed tariffs on countries with trade deficits since taking office. Government sources said that if the import taxes are removed, U.S. liquefied natural gas will be more competitive in the Indian market.

India may follow the trade model with the UAE and remove relevant tariffs under the framework of a bilateral agreement, a person familiar with the matter said. Last month, India had pledged to increase purchases of U.S. oil and liquefied natural gas to reduce its trade surplus and avoid U.S. tariffs.

Indian Foreign Minister Vikram Misri said after attending a meeting between Trump and Indian Prime Minister Narendra Modi in Washington that India may significantly increase its energy imports from the United States. The current purchase amount is about $15 billion, which may increase to $25 billion in the future.

Before the meeting between the two leaders, Indian companies were discussing plans to expand energy purchases from the United States.