India-US energy partnership could drive $500 billion trade by 2030; hydrocarbons key to next phase of growth: USIBC–Grant Thornton Bharat report

The India-US energy relationship could play a decisive role in accelerating the shared ambition of reaching $500 billion in bilateral trade by 2030, with hydrocarbons positioned as a critical enabler, according to a new report by USIBC and Grant Thornton Bharat.

Titled Strengthening the India-US Energy Partnership: Unlocking Hydrocarbon Opportunities through Investment and Collaboration, the report argues that the relationship is transitioning from a traditional buyer-seller model into a broader strategic framework encompassing trade, investment flows, technology integration, infrastructure development and energy security.

It identifies key growth segments including LNG, crude oil, LPG, ethane and propane, highlighting their role in strengthening supply chain resilience while addressing rising energy demand in India and expanding export capacity in the United States.

Rahul Sharma, Managing Director, USIBC India, said this evolution reflects a deeper strategic convergence between the two economies. “The India-US energy relationship is moving beyond transactional engagement to deeper integration. As trusted partners, both countries are well positioned to collaborate across energy, technology and investment to strengthen energy security and support broader economic growth,” he noted.

Two-way investment flows deepen across energy value chain

The report underscores the emergence of a more balanced investment corridor across the hydrocarbon ecosystem.

In India, US companies are expected to expand participation across upstream exploration and production, LNG infrastructure, city gas distribution networks, gas-based power generation and petrochemicals. This reflects growing interest in India’s expanding energy demand and infrastructure build-out.

Conversely, Indian firms are increasingly exploring opportunities in the US energy market, including LNG export terminals, shale assets, upstream oil and gas projects and petrochemical feedstock chains, signalling a shift toward reciprocal capital flows rather than one-directional trade.

Amit Kumar, Partner and Energy & Renewables Industry Leader at Grant Thornton Bharat, said this phase marks a structural shift in the relationship. “The partnership is moving beyond commodity trade into deeper collaboration across investment, infrastructure and supply chains. With India’s energy demand rising and the US strengthening its position as a major energy exporter, hydrocarbons can become a powerful catalyst for achieving the $500 billion trade goal,” he said.

AI-led energy systems and strategic reserves seen as next frontier

Beyond trade and investment, the report highlights technology and resilience as emerging pillars of cooperation.

It recommends the establishment of an India-US AI-powered Energy Task Force to accelerate adoption of advanced technologies such as AI-driven forecasting, seismic interpretation, exploration optimisation, predictive maintenance and digital twin systems for real-time operational efficiency.

The paper also calls for deeper collaboration on Strategic Petroleum Reserves (SPR), including shared storage infrastructure, emergency response systems, inventory coordination and reserve financing frameworks to strengthen resilience against global supply disruptions.

With India’s gas demand rising steadily and the US scaling up LNG exports, the report concludes that stronger policy alignment, deeper investment integration and technology collaboration could position the partnership as one of the most consequential energy alliances globally.

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