India’s Russian Oil Trade Collides With U.S. Tariffs, Threatening Key Industries

India's lucrative Russian oil imports face a reckoning as U.S. tariffs slash export revenues by $37 billion this fiscal year. Labor-intensive sectors—gems, textiles, and jewelry—bear the brunt, endangering tens of thousands of jobs ahead of critical state elections.

Prime Minister Modi's tax relief pledges aim to placate voters, but his silence on the oil trade speaks volumes. India now sources 40% of its crude from Russia, with Reliance Industries securing discounts up to 7% below market rates. Abruptly replacing 2 million daily barrels could send global oil prices spiraling to $200.

The WHITE House's 50% tariffs explicitly target India's circumvention of Western sanctions. Yet New Delhi refuses to retreat, locking horns with Washington while global energy markets brace for turbulence.