Impact on India's Energy Security
The recent signing of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by US President Donald Trump has raised concerns about India's energy security and trade relations with the US. The law enables the US administration to impose tariffs of up to 100 percent on imports from countries that are significant buyers of Russian crude oil and natural gas.
Risks for India
India, being one of the largest buyers of Russian crude oil, is at risk of facing these tariffs. This could have significant implications for India's energy security, as discounted Russian crude has helped lower India's import bill, strengthen energy security, and contain inflation.
Expert Advice
Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), advises India not to exchange its long-term energy security and permanent trade concessions for temporary tariff relief from the US. He suggests that India should continue buying Russian oil as long as it remains commercially competitive and negotiate firmly with Washington to avoid unilateral trade concessions.
Concerns from the Textile Sector
The Confederation of Indian Textile Industry (CITI) has expressed grave concern over the potential impact on India's textile and apparel exports from any additional US tariffs. CITI Chairman Ashwin Chandran emphasized that the US remains the sector's most significant export market and urged the Government of India to engage more closely with the US to ensure Indian exporters are not disadvantaged.
Way Forward
The actual impact on Indian exports can only be assessed after Washington announces the tariff rate, products covered, and implementation schedule. However, experts stress that India needs to prioritize its energy security and negotiate a fair, balanced, and equitable bilateral trade agreement with the US.