US tariffs on Russian oil could hit India hard
India's big $17 billion savings from buying cheaper Russian oil since 2022 are now in trouble.
New US tariffs, already in effect as of August 2024, may slash Indian exports by over 40%, which could mean a $37 billion loss by FY26.
If India halts Russian oil imports, local crude prices might even spike to $200 a barrel—a tough hit for everyone.
India must balance its ties with Russia and the US
The Global Trade Research Initiative warns these tariffs could cost lots of jobs, especially in textiles, gems, and jewelry—bad timing with rural frustration already rising.
All this is happening as PM Modi juggles tricky talks with the US on energy and trade while also prepping for the Shanghai Cooperation Organisation summit.
Balancing old ties with Russia and growing connections with the US just got way more complicated.