Indian oil refineries, both state-owned and private, plan to reduce their oil purchases from Russia to 1.4–1.6 million barrels per day starting in October. This is lower compared to the average import level of about 1.8 million barrels per day in the first half of 2025. This move is seen as a cautious signal from Delhi in response to the U.S. decision to raise import tariffs on Indian goods to 50%.
This is reported by Finway
Maintaining Cooperation with Russia and Trade Prospects
Despite the announced reduction in purchases, India is not completely abandoning its energy ties with Russia. Russian oil remains attractive to Indian companies due to its lower cost, which will continue to be a key factor in purchasing decisions. Imports may increase again if India reaches an agreement with the U.S. and the pressure on its economy decreases. Until 2022, India’s oil imports from Russia were minimal; however, this country now accounts for 37% of Russian oil exports.
Impact of New Tariffs on Indian Exports
Indian exporters are preparing for potential trade disruptions due to the U.S. intention to impose additional tariffs. The U.S. Department of Homeland Security has confirmed that these measures will take effect soon. According to the American side, the tariff increase is a response to India’s indirect support for Russian aggression against Ukraine.
The U.S. emphasizes that these measures are a response to India’s indirect support for Russia’s military invasion of Ukraine.
Exporters from India who face losses due to the new tariffs may expect financial support from the government. Additionally, they are advised to diversify their markets and consider alternative directions, including China, Latin American countries, and the Middle East.