The Global Trade Research Initiative (GTRI) has put the spotlight firmly on the US oil-linked tariff, urging the Board of Trade (BoT) to make securing its rollback India’s top trade priority.
The BoT, chaired by the Commerce and Industry Minister and meeting today to propose measures to revive export growth, has been asked to press Washington to withdraw the additional 25 per cent “Russian oil” duty before India enters any trade-pact discussions with the United States.
GTRI notes that the surcharge was originally imposed on countries sourcing crude from sanctioned Russian entities, but that basis no longer stands.
President Trump has already confirmed that India has “very substantially” stopped buying oil from those firms.
With the condition met, the think tank argues that obtaining the rollback should be India’s “immediate priority,” as the tariff currently doubles the effective duty burden on Indian goods — from 25 per cent to 50 per cent.
Under President Trump, the US imposed a 25 per cent reciprocal tariff on Indian imports, along with an additional 25 per cent penalty tied to New Delhi’s earlier purchases of Russian oil.
A removal of the surcharge, GTRI says, would deliver direct and immediate relief to labour-intensive export sectors including textiles, leather, gems and jewellery, and pharmaceuticals, and help restore India’s export competitiveness in the US market.
It stresses that future negotiations with Washington must take place “on equal footing,” which will be possible only if the punitive oil-related duty is first dismantled.
Alongside the tariff issue, GTRI has also flagged delays in the rollout of the Export Promotion Mission (EPM), urging the BoT to treat this as an urgent operational priority.
Despite being announced in the March budget and approved by the Cabinet on November 12, the Mission “remains only a framework with no operational schemes” even as eight months of FY 2025–26 have passed.
Older schemes such as the Market Access Initiative and the Interest Equalisation Scheme “have made no payouts this year,” leaving exporters without critical support during a period of global stress.
With annual EPM funding capped at under ₹4,200 crore — “barely enough to meet last year’s interest-support bill” — GTRI warns that the Mission will fail to meet its objectives unless the government immediately issues scheme guidelines, restores predictable disbursals and provides clarity on eligibility and timelines.
As the government’s apex advisory body on trade policy, the BoT will today bring together state governments, senior officials, industry leaders and export-promotion councils to align national and state priorities and chart India’s next trade strategy.
