India to lose twice as much as it saved on oil from Russia due to Trump's tariffs - Reuters
Indian Prime Minister Narendra Modi and Russian President Vladimir Putin (photo - EPA)

India has saved billions of dollars by increasing its imports of Russian oil at discounted prices since Russia's invasion of Ukraine. However, the 50% US tariff that came into effect on August 27 will quickly wipe out these gains, writes Reuters.

According to analysts at the Global Trade Research Initiative (GTRI) in New Delhi, India has saved a total of about $17 billion over three and a half years by increasing oil imports from Russia.

At the same time, additional US duties due to India's purchases of Russian oil could reduce exports by more than 40%, or almost $37 billion, in April-March of this fiscal year alone.

Indian exporters hit by Donald Trump's 50% tariff , say they can't survive without government support, reports Bloomberg.

Duties make Indian goods uncompetitive in the US market. Industry groups are pushing for stimulus measures, including cheaper loans, wage subsidies and tax breaks, to soften the blow.

They warn that without such assistance, production will stop, workers may be laid off, and India risks losing its hard-won market share to competitors.

The United States is the largest market for Indian exports. in 2024, India exported $87.4 billion worth of goods to the United States, about one-fifth of its total merchandise exports for the year.

According to Israr Ahmed, managing director of Farida Shoes Pvt. Ltd., buyers are already shifting orders to Bangladesh, Vietnam, and Cambodia, where tariffs are hovering around 20%. According to his estimates, shoe exports to the US could fall by 90% this year.

Clothing manufacturers estimate losses at about $3 billion. To cope with the situation, Indian companies are shifting production to foreign facilities, such as Bangladesh and Cambodia, to retain customers and avoid high duties.

The tariffs affect more than 55% of goods shipped from India to the US, and will hit labor-intensive industries such as textiles and jewelry the hardest. Key exports, such as electronics and pharmaceuticals, are exempt, which so far allows Apple to maintain large-scale investments in new factories in India.