India and US Strike Trade Deal: Russian Oil Restrictions and Tariff Reductions

India agrees to reduce Russian oil imports in exchange for lower US tariffs. The deal, announced by President Trump, cuts India's oil imports and increases US goods purchases. This partnership lowers tariffs on Indian exports and limits further Russian oil purchases, with exceptions for specific refiners.

India and the United States have reached a significant trade agreement, with India committing to limit its Russian oil imports in return for reduced US tariffs on Indian goods. The agreement aims to boost bilateral trade, with the US lowering its tariff on Indian goods to 18 percent from the previous 25 percent.

President Donald Trump stated that the consensus also includes India's pledge to purchase an additional USD 500 billion in US goods over time. The move marks a shift in India's energy strategy, potentially filling the gap in oil imports from Russia with US and Venezuelan crude.

Despite the agreement, India's immediate purchases of Russian oil are expected to remain stable in the short term, as existing commitments continue. The deal is expected to eventually halve Russian oil imports, with particular exceptions for refiners like Nayara Energy.

(With inputs from agencies.)