Amidst mounting pressure from the Donald Trump administration, India has made it clear that any trade deal with US, or its decision to buy crude oil from Russia will be driven by national interest. India faces the prospect of 50% tariffs on its goods exported to the US, effective August 27. While a 25% ‘reciprocal’ tariff has been in effect from August 7, an additional 25% US tariff for India’s crude oil trade with Russia is expected to come into place from August 27.
The government has slammed pressure tactics by the Trump administration on the trade deal negotiations, and suggestions that India is financing the Russia-Ukraine war through its crude oil procurement.
At the Economic Times World Leaders Forum, External Affairs Minister S Jaishankar and Commerce Minister Piyush Goyal have defended India’s right to protect its national interest, making it clear that there are ‘red lines’ for the trade deal.
India’s no holds barred message on buying Russian crude oil
Addressing accusations of profiteering from Russian crude oil Jaishankar said, "It's funny to have people who work for a pro-business American administration accusing other people of doing business. If you have a problem buying oil or refined products from India, don't buy it. Nobody forces you to buy it. Europe buys, America buys, so you don't like it, don't buy it."
Also Read | Amidst Trump’s tariff threats, Indo-China trade ties to see reset; India to gain from big urea shipments
Reflecting on the oil price surge in 2022, he highlighted the global anxiety during that period. He recalled that India's decision to purchase Russian oil was supported internationally as it helped stabilise market prices.
India's oil purchases serve dual purposes, Jaishankar explained. "We are buying oil to stabilise the oil prices. Yes, it is in our national interest but it is also in a global interest," he explained, highlighting the broader market implications.
Discussing India-Russia relations, Jaishankar noted that his Moscow visit following the Alaska meeting centred on yearly bilateral collaborations. "We'd like to increase trade with Russia," he stated, whilst emphasising India's straightforward stance on the Ukraine situation. "Where India stands is very clear and we want an early end to the Russia-Ukraine issue."
India clear on ‘what drives a deal’
Piyush Goyal made it clear that national interests and not geopolitical situations would drive trade deals for India.
India's ties with the US remain "very consequential", however, trade agreements are exclusively guided by national priorities, Goyal said on Friday at the event. He emphasised that India maintains distinct approaches towards trade and geopolitics, treating them as separate matters.
"Geopolitical considerations or wanting to look good will never drive India's trade decisions… We are multilateral in every dimension, but when it comes to opening India's market and expanding trade, our stakeholders, their views and their best interests are paramount," Goyal said. "What's good for the industry and the country, that's what drives us for a deal."
Also Read | Over 20% of Russia's war-period crude exports! India bought about Rs 13.39 lakh crore in Russian oil; trails China’s Rs 193 billion
Regarding current US trade discussions, Jaishankar affirmed that whilst negotiations continue, India maintains strict positions. "We have red lines in the negotiations, and we have to be clear about them. We are committed to protecting the interests of farmers and small businesses," he said.
Speaking about India-US relations, Jaishankar emphasised that communication channels remain functional despite disagreements. "We are two big countries, we need to have conversations and we will see how it goes," he said.
"Right now there are issues, it is pretty open, but it's not like we never had issues before. Other parts of the relationship are strong," he said.
BRICS, India-China relations
Jaishankar noted that whilst India maintains relationships with major global powers like the US and China, these connections have seen periods of collaboration and disagreement, yet maintained an overall positive direction.
Regarding international partnerships, he said, "The Quad is still the Quad and BRICS is still BRICS. Countries like us should not be forced to make binary choices."
Also Read | 'If West criticises, you are doing right..’: Russia slams Trump’s 25% penal tariffs on India - 10 hard-hitting statements for reality check to US
India Inc ‘super-confident’
Indian businesses remain optimistic despite the tariff challenges, according to Goyal. Companies have informed him about their alternative strategies and express strong confidence that their performance will exceed last year's results, he said. The government is taking a measured approach to address the concerns.
The minister emphasised that India is adopting a strategic and pragmatic stance without making hasty decisions. He explained that his ministry, alongside other departments, is evaluating how India's strengths can complement other economies to enhance international trade relationships.
“Maybe buy some more from them what we need, sell some more what they need. So there are different ways in which we can ameliorate this current situation, until we are able to come to a settlement,” he said.
The government has slammed pressure tactics by the Trump administration on the trade deal negotiations, and suggestions that India is financing the Russia-Ukraine war through its crude oil procurement.
At the Economic Times World Leaders Forum, External Affairs Minister S Jaishankar and Commerce Minister Piyush Goyal have defended India’s right to protect its national interest, making it clear that there are ‘red lines’ for the trade deal.
India’s no holds barred message on buying Russian crude oil
Addressing accusations of profiteering from Russian crude oil Jaishankar said, "It's funny to have people who work for a pro-business American administration accusing other people of doing business. If you have a problem buying oil or refined products from India, don't buy it. Nobody forces you to buy it. Europe buys, America buys, so you don't like it, don't buy it."
Also Read | Amidst Trump’s tariff threats, Indo-China trade ties to see reset; India to gain from big urea shipments
Reflecting on the oil price surge in 2022, he highlighted the global anxiety during that period. He recalled that India's decision to purchase Russian oil was supported internationally as it helped stabilise market prices.
India's oil purchases serve dual purposes, Jaishankar explained. "We are buying oil to stabilise the oil prices. Yes, it is in our national interest but it is also in a global interest," he explained, highlighting the broader market implications.
Discussing India-Russia relations, Jaishankar noted that his Moscow visit following the Alaska meeting centred on yearly bilateral collaborations. "We'd like to increase trade with Russia," he stated, whilst emphasising India's straightforward stance on the Ukraine situation. "Where India stands is very clear and we want an early end to the Russia-Ukraine issue."
India clear on ‘what drives a deal’
Piyush Goyal made it clear that national interests and not geopolitical situations would drive trade deals for India.
India's ties with the US remain "very consequential", however, trade agreements are exclusively guided by national priorities, Goyal said on Friday at the event. He emphasised that India maintains distinct approaches towards trade and geopolitics, treating them as separate matters.
"Geopolitical considerations or wanting to look good will never drive India's trade decisions… We are multilateral in every dimension, but when it comes to opening India's market and expanding trade, our stakeholders, their views and their best interests are paramount," Goyal said. "What's good for the industry and the country, that's what drives us for a deal."
Also Read | Over 20% of Russia's war-period crude exports! India bought about Rs 13.39 lakh crore in Russian oil; trails China’s Rs 193 billion
Regarding current US trade discussions, Jaishankar affirmed that whilst negotiations continue, India maintains strict positions. "We have red lines in the negotiations, and we have to be clear about them. We are committed to protecting the interests of farmers and small businesses," he said.
Speaking about India-US relations, Jaishankar emphasised that communication channels remain functional despite disagreements. "We are two big countries, we need to have conversations and we will see how it goes," he said.
"Right now there are issues, it is pretty open, but it's not like we never had issues before. Other parts of the relationship are strong," he said.
BRICS, India-China relations
Jaishankar noted that whilst India maintains relationships with major global powers like the US and China, these connections have seen periods of collaboration and disagreement, yet maintained an overall positive direction.
Regarding international partnerships, he said, "The Quad is still the Quad and BRICS is still BRICS. Countries like us should not be forced to make binary choices."
Also Read | 'If West criticises, you are doing right..’: Russia slams Trump’s 25% penal tariffs on India - 10 hard-hitting statements for reality check to US
India Inc ‘super-confident’
Indian businesses remain optimistic despite the tariff challenges, according to Goyal. Companies have informed him about their alternative strategies and express strong confidence that their performance will exceed last year's results, he said. The government is taking a measured approach to address the concerns.
The minister emphasised that India is adopting a strategic and pragmatic stance without making hasty decisions. He explained that his ministry, alongside other departments, is evaluating how India's strengths can complement other economies to enhance international trade relationships.
“Maybe buy some more from them what we need, sell some more what they need. So there are different ways in which we can ameliorate this current situation, until we are able to come to a settlement,” he said.
You may also like
Jaishankar slams US 'profiteering' claim, asserts sovereign energy choice
Furious TUI holidaymakers 'abandoned' at airport with kids sleeping on floor
Gilmore Girls' Alexis Bledel lands new role in film about startling true story
BBC axes popular sports pundit who owes fellow athletes millions of pounds
Rajasthan HC bans use of 86,000 dilapidated classrooms in govt schools
