India's Strategic Shift to Russian Oil

India has significantly increased its crude oil imports from Russia, from a mere 0.2% before the Russia-Ukraine conflict to now accounting for 35-40% of its total imports. This shift has not gone unnoticed by the Trump administration, which views it as an 'irritant' and has warned of penalties.

US Penalties and India's Response

President Trump has announced a 25% tariff on all US-bound goods from India, with additional penalties for its trade ties with Russia. Despite these warnings, India maintains its right to pursue energy policies that align with its national interests.

The Economic Impact on India

Analysts suggest that if India is forced to reduce its reliance on Russian crude due to US pressure, its annual oil import expenses could surge by $9-11 billion. This comes at a time when India's crude oil imports exceeded $137 billion in the previous fiscal year.

India's Defense Procurement from Russia

Beyond oil, Trump's criticism extends to India's arms purchases from Russia. However, India has been diversifying its defense procurement, reducing its dependence on Russian arms from 72% in 2010-14 to 36% in 2020-24.