New Delhi, Feb 3: A major trade breakthrough between Washington and New Delhi will see India significantly curb its Russian oil imports in exchange for lower tariffs on its exports to the United States. The pact, announced by President Donald Trump, involves India halting new orders for Russian crude while ramping up its intake of American technology, farm products, and energy.
Central to the agreement is a reduction in the tax burden on Indian products entering the US market, which will now face an 18 percent tariff instead of the previous 25 percent. Furthermore, the US has removed a specific 25 percent punitive duty that had been imposed on India as a penalty for its energy dealings with Russia.
Industry insiders indicated that while old orders currently in the pipeline will be fulfilled by Indian refineries, the placement of fresh orders with Russian suppliers will cease. Some exceptions may remain for specific companies that lack immediate infrastructure for alternative crude types, allowing them to utilize temporary discounts.
“India has also pledged to buy $500 billion worth of goods from the US over the next five years,” a source mentioned, pointing to the massive scale of the economic cooperation. Experts believe this decision will fundamentally reshape India’s energy security by increasing the flow of oil from the US and South America.
The move marks a definitive step in balancing India’s global trade interests and strengthening its ties with the US administration. By removing the punitive barriers and lowering standard tariffs, the deal aims to foster a more robust exchange of goods while addressing Western concerns regarding energy revenue flowing to Moscow.
