India's Dilemma: The Cost of Russian Oil Imports Amid US Tariff Hikes

Nobel laureate Abhijit Banerjee expresses concerns over India's continued oil imports from Russia following a US-imposed 25% tariff hike on Indian goods. This decision strains India-US trade relations and adds pressure on India to reconsider its import strategy amidst geopolitical tensions and economic challenges.

India is at a crossroad as it faces increased tariffs from the US due to its oil imports from Russia, Nobel laureate Abhijit Banerjee said on the sidelines of an event. The US, under President Trump's administration, has imposed an additional 25% tariff on Indian goods, primarily influenced by India's import practices.

This steep tariff is set to impact approximately USD 27 billion worth of Indian exports, compelling discussions about potentially reducing or halting oil imports from Russia. Banerjee highlighted the need for significant economic decisions on whether the benefits of Russian oil outweigh the mounting trade tensions with the US.

India's trade relationship with both the US and China remains a focal point of economic discourse, especially after recent geopolitical tensions and economic stagnation in areas like employment and private investments. Amid these dynamics, strategic negotiations and trade reforms are on the horizon for India's policymakers.

(With inputs from agencies.)