Can India diversify its oil sources?
India’s overseas ministry mentioned on Monday that it started importing from Russia as a result of conventional oil provides had been diverted to Europe after the outbreak of the Ukraine conflict.
India nonetheless sources crude oil from elements of the Center East, similar to Iraq, Saudi Arabia and the United Arab Emirates. The area accounted for 45 per cent of the nation’s whole imports in 2024.
In accordance with Minister of Petroleum and Pure Gasoline Hardeep Singh Puri, India has diversified its sources of provide to about 40 international locations. Extra provide is coming onto the market from Guyana, Brazil and Canada, he added.
So India might discover different suppliers to fulfill its power wants comparatively simply. The query is price – as none of India’s different options supply the identical value benefit as Russia.
What subsequent for India?
The Indian authorities on Wednesday referred to as the extra tariffs “unlucky”.
“We reiterate that these actions are unfair, unjustified and unreasonable,” overseas ministry spokesman Randhir Jaiswal mentioned in an announcement, including that India would take all actions crucial to guard its pursuits.
Jaiswal mentioned India has already made its stand clear that the nation’s imports had been based mostly on market elements and had been a part of an general goal of making certain power safety for its 1.4 billion individuals.
One analyst mentioned the brand new tariffs put Prime Minister Narendra Modi in a bind.
“India is now in a entice – due to Trump’s stress, Modi will scale back India’s oil purchases from Russia, however he can’t publicly admit to doing so for concern of trying like he is surrendering to Trump’s blackmail,” mentioned Ashley Tellis at Washington’s Carnegie Endowment for Worldwide Peace.
Reuters beforehand reported that India’s state refiners had paused Russian oil purchases.
Can the US do the identical to China?
China is the largest importer of Russian crude forward of India. Türkiye can be a serious purchaser, and Trump has warned that international locations buying Russian exports might face sanctions if Moscow fails to achieve a peace cope with Ukraine.
However Trump might discover it troublesome to impose such tariffs on Beijing, Dr Susan Stone advised CNA.
Dr Stone, Credit score Union SA Chair of Economics on the College of South Australia, famous that US commerce with China was 5 instances bigger than its commerce with India.
“China’s been exhibiting its willingness to retaliate, and naturally, it has the financial heft behind it to make these retaliatory measures extra painful, possibly than different international locations to the US,” she mentioned.
“So it’s going to be fascinating to see if the US threatens China, after which if it does, how that performs out.”
As a part of a negotiating interval with Beijing, Trump has positioned 30 per cent tariffs on items from China, a charge that’s decrease than the mixed import taxes that India faces.
Ajay Srivastava, a former Indian commerce official, advised AP that Trump’s resolution on India was “hypocritical” on condition that China buys extra Russian oil.
“Washington avoids concentrating on Beijing due to China’s leverage over crucial minerals, that are important for US defence and know-how,” he mentioned.
