New Delhi is under mounting pressure from the Trump administration to reduce its energy dependence on Moscow

India has announced a major contract for sourcing liquified petroleum gas (LPG) from the US.

The deal comes amid mounting pressure from the administration of US President Donald Trump to slash New Delhi's trade deficit with Washington and end oil purchases from Russia.

"Indian PSU [public sector undertaking] oil companies have successfully concluded a 1-year deal for imports of around 2.2 MTPA LPG," Indian Petroleum and Natural Gas Minister Hardeep Singh Puri said in a post on X.

The volumes will account for close to 10% of India's annual LPG imports, Puri said. India imports around 20-21 million tons of LPG annually.

The US has imposed a 50% reciprocal tariff on Indian goods, including a 25% levy on imports of Russian oil.

India retained its position as the second-largest buyer of Russian crude oil in October. 

New Delhi has dismissed criticism over its Russian oil imports and maintains its energy policy is driven by "national interest," though it is also expanding trade with the US. 

Trump has backed US lawmakers drafting legislation to sanction countries purchasing Russian oil.

India's total exports to the US fell for a second consecutive month since the 50% tariffs were imposed late in August, according to reports.

Shipments to the US reduced 8.5% year-on-year in October to $6.3 billion.

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The US is still India's largest export market. In the first 7 months of this fiscal year, it accounted for exports worth $52 billion, according to reports.

In September, Trump had referred to the trade ties between India and the US as a "totally one-sided disaster." India had a trade surplus of $40.82 billion with the US in FY25.

US Commerce Secretary Howard Lutnick said in September that India must open its markets.