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US's Russia oil tariff impact on India: Domestic demand prevails
India just clocked a solid 7.8% growth in the first quarter of FY26—a five-quarter high—even after the US slapped 50% tariffs on Indian imports over its oil trade with Russia.
The boost came mostly from strong spending at home, which makes up over 60% of India's GDP.
While experts say these new tariffs might trim growth by a tiny margin (about 0.3-0.8%), domestic demand is keeping the economy steady.
If ties get too strained, India might seek new allies
The tariff move could put some strain on US-India relations, especially since both countries have shared interests in the Indo-Pacific region and value their strategic partnership.
If things get too tense, there's a chance India could look for new allies—which might not be great news for the US and its long-term goals in Asia.