Discounted Russian Oil Offsets India's Export Losses Amid US Tariffs: Urjit Patel

(MENAFN- KNN India) New Delhi, Sep 4 (KNN) Indian exports are facing mounting pressure from punitive US tariffs, while discounted Russian crude continues to provide significant relief to the country's balance of payments.

More than half of shipments to the US market are now subject to higher duties, even as cheaper energy imports help offset external vulnerabilities.

In an interview with The Indian Express, former Reserve Bank of India Governor and IMF Executive Director Urjit Patel said around 55 per cent of India's exports to the United States are under punitive tariffs.

He cautioned that abrupt changes in tariff regimes over recent months have increased investment uncertainty, but noted that with the US accounting for just 13 per cent of global trade, there remains scope for India to deepen partnerships with other markets.

Patel emphasised that savings from Russian oil imports far outweigh export-related losses. He argued that without access to discounted crude, India's external position would have been far more vulnerable to global oil price spikes.

India, the world's third-largest oil importer, continues to legally procure Russian crude despite the G7 price cap imposed in 2022, alongside other nations that remain active buyers of Russian hydrocarbons.

He also pointed to sanctions, secondary sanctions and retaliatory measures as a growing source of global instability.

These, Patel warned, create spillover effects well beyond their intended targets and have become a fundamental driver of uncertainty in the world economy.

(KNN Bureau)

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