India should halt sanctioned oil imports, press for tariff withdrawal, and resume trade talks with the United States only on fair terms, the Global Trade Research Initiative (GTRI) said while outlining a three-step plan for protecting India’s trade interests amid ongoing bilateral trade negotiations, news agency ANI reported.
Once these imports stop, India should urge Washington to withdraw the 25 per cent “Russian oil” tariff imposed on Indian exports, the think tank added.
Finally, trade discussions with the US should resume only after tariffs are normalised and talks proceed on equitable terms, it said.
“End oil imports from sanctioned Russian firms to avoid secondary sanctions. Press Washington to withdraw the punitive 25 per cent ‘Russian oil’ tariff once those imports stop. Restart trade negotiations only after tariffs normalise — and only on fair, balanced terms,” the GTRI said in its note.
Rising trade strain and sanctions impact
On October 24, government officials said India and the US were “very near” to finalising the first tranche of the Bilateral Trade Agreement (BTA). GTRI’s call for a phased strategy follows Washington’s October 22 sanctions on Rosneft and Lukoil, which together account for 57 per cent of Russia’s crude output.
The new sanctions have complicated India’s trade position, threatening access to critical financial and digital infrastructure. Since the US introduced the 25 per cent “Russian oil” tariff on July 31, total duties on Indian exports have doubled to 50 per cent, leading to a 37 per cent fall in shipments between May and September.
The note cautioned that while tariffs directly hurt exporters, secondary sanctions could have broader consequences by restricting access to payment systems such as SWIFT, freezing dollar transactions, and limiting digital services used by refineries, ports, and banks.
Parity with global partners
GTRI said India should seek parity with key partners, such as the European Union, by targeting average industrial tariffs of around 15 per cent and securing duty-free access for priority export sectors, including textiles, gems and jewellery, and pharmaceuticals.
Once imports from sanctioned Russian firms end, India should demand the withdrawal of the “Russian oil” tariff, as current sanctions cover only about 57 per cent of Russia’s output, but the tariff applies broadly, the note added. Removing the levy would reduce India’s overall US duty burden from 50 per cent to 25 per cent, helping restore export competitiveness.
