A recently 25 % customs tariff applied by the United States-the largest market for Indian goods-caused Shocks in Indian export sectorswhich include textiles, pharmaceuticals, car parts, engineering goods and IT equipment.
Small and medium -sized enterprises (SMEs) are particularly susceptible, which is the basis of the Indian economy based on export. Economic analysts warn that India may lose up to $ 2.5 billion. [ok. 9 mld zł] revenues from export, which will increase the deficit on the current turnover account and weaken the rupe.
18. The Sanctions of the European Union, adopted in July, is aimed at the Russian energy sector and It covers the import of refined oil products from Russian oil – such as those processed in India, Turkey or the United Arab Emirates. The goal is to further reduce the Russian war machine.
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As a result, the situation on the Indian export market to Europe worth $ 14.3 billion. [ok. 52 mld zł] She is becoming more and more tense. Key Indian refineries, such as Nayara Energy in Vadinar, partly belonging to the Russian oil giant Rosneft, They are in the face of operational interference due to the withdrawal of global shipping services and tightening the enforcement of the Russian oil price limit.
The permanent trade of India with Russia, which dates back to Soviet times, especially in the field of military equipment and energy, has long raised concerns among Western allies. On August 4, US President Donald Trump escalated tension, threatening to “significantly” raising his duties to Indian goods, By accusing India of deriving the resale of Russian oil.
In a post on social media, he said: “India not only buy huge amounts of Russian oil, but also sell it on the open market with great profit […] They don't care how many people in Ukraine die at the hands of the Russian war machine“.
The Indian Ministry of External Affairs contested the statements of the US President, Stating that “nations criticizing India themselves trade with Russia”. Indian officials drew attention to double standards when it comes to interests with Moscow, emphasizing strong business ties between Russia and the EU.
“The European Union in 2024 conducted a two -sided trade in goods with Russia worth EUR 67.5 billion [ok. 287 mld zł]. In addition, in 2023, service trade was estimated at EUR 17.2 billion [ok. 73 mld zł]. This is much more than the total trade of India with Russia this year or later. The European LNG import in 2024 reached a record level of 16.5 million tonsexceeding the previous record of 15.21 million tons in 2022, “said the Indian Ministry of Foreign Affairs.
New Delhi ensures that his policy is driven by a national interest
According to Crea (Center for Energy and Pure Air Research), an independent organization that runs the Russia Fossil Fuel Tracker program [śledzenia rosyjskich paliw kopalnych]import of Russian fossil fuels to the EU in the third year of the invasion was higher than financial assistance sent to Ukraine in 2024, i.e. 18.7 billion euros [ok. 80 mld zł].
Neither Russian pipeline gas nor liquefied natural gas (LNG) are currently covered by EU sanctions. According to Crea, from the beginning of the full -scale invasion until April 2025, the EU paid Russia $ 105.6 billion. [ok. 387 mld zł] – which corresponds to 75 percent. the entire Russian military budget for 2024. – For gas import. As for the Russian LNG, imports to the EU increased by 9 percent. Year on year, with the largest increase in shopping were recorded by France, Belgium, Spain and the Netherlands.
The screen on the Bombay Stock Exchange, July 31, 2025.Indranilil Mukherjee / AFP / AFP
While India is fighting for two -sided trade agreements with both the EU and the USA before the end of the year, The coming weeks and months will test the country's economic resistance In the face of the more and more hostile rhetoric of the US president and the EU imposing Russian sanctions. While New Delhi ensures that his energy policy is driven by a national interest, Washington perceives the import of Russian oil by India as undermining global sanctions aimed at stopping the Russian war machine.
So far The Asian tiger reacts with loud oppositionlike his regional opponent, China, the largest buyer of Russian discounted oil.
Ajit Doval, an advisor to national security of India, was to come to Moscow this week for double -sided conversations aimed at Increasing energy and military cooperationincluding the purchase of air defense systems S-400. Although this journey was planned in advance, Washington can interpret it as a sign of India's opposition to Trump's recent comments.
However, India seems not to hurry with the change of course, Despite the growing economic pressure exerted by the US administration and the Sanctions of the EU. The way India reacts to a double economic and diplomatic challenge can determine their place in the future global order.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
