India should weigh whether or not discounted oil from Russia is value the associated fee after the US sharply elevated tariffs on Indian items, Nobel laureate Abhijit Banerjee has stated.
Final week, US President Donald Trump signed an govt order imposing a further 25% obligation on Indian exports in retaliation for New Delhi’s continued purchases of Russian crude. The hike, which takes impact August 27, raises complete US tariffs on India to 50% — among the many highest Washington has imposed on any nation.
“We have to assume onerous about whether or not Russian oil imports are value it, after which return to the US to say, will they take the tariff off if we cease importing Russian oil,” Banerjee informed PTI on the sidelines of an occasion at BML Munjal College.
The transfer might affect round $27 billion in non-exempt Indian exports to the US, fuelling hypothesis that India would possibly reduce or halt Russian oil imports. India is at present the most important purchaser of Russian crude, importing 1.6 million barrels per day in July. However refiners have positioned no orders for August or September, as worth reductions have narrowed to only $2 per barrel.
In FY25, India imported 88 million tonnes of Russian oil out of a complete 245 million tonnes. Orders for August and September have been already locked in earlier than Trump’s August 7 announcement.
The tariff escalation comes amid a stalled US-India commerce deal, with Washington demanding higher entry to Indian agricultural and dairy markets. Banerjee urged India might additionally revisit curbs on Chinese language funding as a part of wider commerce negotiations, noting Beijing’s have to handle its personal relations with the US.
On the broader financial system, Banerjee painted a sobering image, citing a struggling center class, stagnant IT sector salaries, and weak non-public funding. “Not so good as we anticipated,” he stated. “These are all points we have now not handled, and we’re sitting on them.”
(With inputs from PTI)
