Paper: GS – II, Subject: International Relations, Topic: Agreements involving India and/or affecting India’s interests, Issue: India–US Trade Relations.
Context:
India’s postponed trade delegation visits to the U.S. and the recent U.S. Supreme Court ruling on tariffs, particularly concerning India’s oil imports from Russia and its ambitious $500 billion import goal from the U.S.
Key Takeaways:
Key Developments:
- Postponement of Trade Delegation: Indian trade delegation’s visit to Washington (Feb 23–25, 2026) postponed.
- Aim: Finalise Interim Trade Agreement with the U.S.
- Commerce Minister Piyush Goyal earlier indicated rollout between mid-March and early April.
- Delay linked to reassessment after recent developments (including U.S. legal ruling).
U.S. Supreme Court Ruling on Tariffs:
- The U.S. Supreme Court’s recent ruling has removed the legal basis for US President to impose tariffs on India for its continued purchase of Russian oil.
- India may reduce its reliance on more expensive American and Venezuelan oil, potentially increasing its imports from Russia.
Impact on Oil Imports:
- Russia’s share in India’s crude imports fell to a 38-month low (Dec 2025).
- U.S. crude imports rose by 31% in the same period.
- U.S. oil priced higher than Russian crude.
- If tariff threat fades, India may increase cheaper Russian imports.
India is navigating a complex trade and energy landscape by balancing discounted Russian oil imports with deeper trade engagement with the U.S. The U.S. Supreme Court ruling provides temporary strategic space, but long-term policy will depend on geopolitical shifts, domestic industry interests, and energy security priorities.
Source: (The Hindu)
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