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In a firm diplomatic response to escalating trade tensions, India’s Ministry of External Affairs (MEA) has strongly defended its decision to import oil from Russia, calling recent US tariff threats “unjustified and unreasonable.” The statement, issued on August 4, 2025, comes after US President Donald Trump announced a 25 percent tariff on Indian goods, citing India’s continued energy and defense ties with Russia.
Key Highlights from MEA’s Statement
India began importing Russian oil after traditional suppliers redirected exports to Europe following the Ukraine conflict.
The US had actively encouraged India’s Russian oil purchases at the time to stabilize global energy markets.
India’s imports are aimed at ensuring predictable and affordable energy costs for domestic consumers.
The MEA emphasized that India will take all necessary measures to safeguard its national interests and economic security.
Context Behind India’s Energy Strategy
Shift in Global Supply Chains
After the Ukraine war, Western sanctions on Russia led to a reconfiguration of global oil flows.
Europe absorbed much of the Middle East’s supply, prompting India to turn to discounted Russian crude.
Economic Necessity, Not Opportunism
MEA spokesperson Randhir Jaiswal clarified that India’s energy decisions are guided by market availability and national needs.
Russian oil accounted for up to 40 percent of India’s crude imports at its peak, helping buffer inflation and fuel costs.
Global Double Standards
India pointed out that both the US and EU continue to trade extensively with Russia.
The EU recorded €67.5 billion in goods trade and €17.2 billion in services with Russia in 2024.
The US continues to import uranium hexafluoride, palladium, and fertilizers from Russia.
India’s Response to US Tariff Escalation
The 25 percent tariff, effective August 1, is accompanied by an unspecified penalty targeting India’s Russian purchases.
India’s government is reviewing the implications and consulting stakeholders, including exporters and MSMEs.
Commerce Minister Piyush Goyal stated that India will protect its farmers, entrepreneurs, and strategic sectors from adverse impacts.
Strategic and Diplomatic Positioning
India-US Relations Remain Resilient
Despite tensions, MEA reaffirmed that India and the US share a comprehensive strategic partnership.
The relationship is anchored in shared democratic values, defense cooperation, and people-to-people ties.
India-Russia Ties Stand Independently
Jaiswal emphasized that India’s bilateral relationships are based on merit and should not be viewed through the lens of third-party interests.
Defense procurement from Russia is driven by national security imperatives and strategic assessments.
Trade Negotiations Continue
India and the US are engaged in talks to finalize a fair and balanced bilateral trade agreement.
The next round of negotiations is scheduled for August 25 in New Delhi.
Broader Implications
The tariff hike is seen as a pressure tactic amid stalled trade talks and geopolitical realignments.
Indian exporters in electronics, pharmaceuticals, and textiles may face short-term headwinds.
However, India’s measured response and focus on long-term strategic interests signal diplomatic maturity.
Conclusion
India’s assertive stance on its energy imports and trade sovereignty reflects a broader commitment to national interest and economic stability. While US tariffs pose immediate challenges, India’s calibrated diplomacy and resilient partnerships suggest it is prepared to navigate the turbulence. As global power dynamics shift, New Delhi remains focused on securing affordable energy, protecting domestic industries, and maintaining strategic autonomy.
Source: MEA Statement via The Hindu BusinessLine, Zee News, Deccan Herald – August 4, 2025
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