Is It Worth Bearing Heavy Tariffs For Cheaper Russian Oil; Has India Made A Dangerous Bargain? | World News
New Delhi: The Nobel Prize -winning economist Abhijit Banjee called on India to think about the cost of cheaper Russian oil. He questioned whether paying high US tariffs would be worth savings. Comments came days after US President Donald Trump announced an extra tariff announcement on Indian goods. The action aims to purchase India’s ongoing large -scale discounted Russian crude oil.
With the implementation of the new tariff, Indian products entering the US market will now face a total of 50%task. This points to one of Trump’s highest rates for any country. The additional tariff comes into force on 27 August. The Indian-US trade agreement, which has been discussed for a long time, continues to stop. Washington wants more access to the Indian farm and milk sectors, while the new Delhi makes concessions.
The effect may be severe. Approximately 27 billion dollars of Indian exports, which are not special trade exemptions, may lose their competitiveness in the USA.
Speaking with the PTI news agency PTI of an event at the UN Munjal University, Banerjee said that the government should carefully weigh the options. India suggested to investigate whether the United States will remove tariffs if India stopped Russian oil imports.
India continues to be the largest global buyer of the Russian raw. In July, the refinerers bought 1.6 million barrels a day. New orders were not given for August and September. Black Sea Oil now offers only $ 2 discount per barrel. In 2024-25, India imported 88 million tons of Russian oil. This made a large share of total raw imports 245 million tons. Oil contracts for August and September were completed before Trump’s tariff announcement on August 7.
In a 25% tariff, Banerler stressed that some Indian exports have already lost the price advantages. Increasing this to 50% may not change much for these products.
He added that the policy circles have already discussed a segment in Russian raw purchases.
In the economy, this year’s appearance described it as weaker than expected. He referred to low private investment and pressure on the middle class. TATA Consultancy Service (TCS) and Information Technology (CT) sector in the sector, such as stagnant wages pointed out in large companies. He said these problems were not solved.
India’s seafood sector already feels tension. Indian Seafood Exporters Association (SeaI) called the ministries of trade and finance for emergency assistance. This says Trump’s tariff of approximately $ 2 billion in the US market is faced with serious obstacles.
SEAI requires a 30% increase in working capital through soft loans with a 240 -day moratorium for interest subsidies and before and after the package.
Seai Secretary General Kn Raghavan told PTI that the shrimp industry was under heavy stress and needed state intervention immediately.
