US Waiver on Russia-Linked Oil Tariffs Could Lift India-US Trade
New Delhi, November 2: A new report says a United States decision to provide relief to major buyers of Russian-origin oil and gas under its tariff and sanctions measures could bring a welcome boost to India-US trade. The step is seen as a positive signal for Indian exporters who had been facing growing uncertainty.
The report stated that an executive order recently signed by President Donald Trump may help strengthen bilateral trade, create employment opportunities, and support the long-term goal of reaching $500 billion in trade between India and the United States by 2030.
The order has lowered the immediate possibility of up to 100 percent extra tariffs on Indian exports tied to energy purchases from Russia. This has reduced uncertainty that was weighing on businesses engaged in cross-border commerce.
With this clarity, companies are better positioned to plan shipments, discuss contract terms, and take investment decisions with more confidence. Sectors such as engineering goods and industrial machinery rely on stable long-term buyer relationships, competitive pricing, and dependable delivery, which the report says can now be pursued with greater assurance.
The report added that US importers can now weigh sourcing options from Indian companies without the immediate concern that existed previously. This enables traders in both countries to spend more time exploring new business avenues rather than responding to constantly changing policy conditions.
The report also made clear that the waiver does not resolve every tariff-related issue. However, it lowers the risk of trade tensions escalating and gives India a chance to renew commercial momentum in one of its most important export markets.
The United States remains the largest destination for India's exports of goods, including manufacturing products, pharmaceuticals, engineering items, electronics, and labour-intensive commodities. India's goods exports to the US were around $86.5 billion in fiscal year 2024-25 and increased to $87.3 billion in fiscal year 2025-26. Exports grew by about 0.9 percent during this period, even with tariff measures in place.
India's exports to the US in September 2026 reached $8.02 billion, marking a 48 percent increase compared with $5.42 billion in September 2025.
The report observed that better coordination in energy, manufacturing, technology, investment, and supply chains could help both nations recognise shared interests and reduce the likelihood of future disruptions to trade.