India’s Energy Calculus
India has emerged as the second-largest importer of Russian oil, behind only China, according to the U.S. Energy Information Administration. For New Delhi, oil is not just an energy lifeline—it is an economic artery. The government argues that switching suppliers at higher costs would weaken its foreign reserves and strain domestic growth.
Countering With Tax Cuts
To soften the blow of Trump’s measures, the Indian government this week introduced consumption tax cuts aimed at stimulating local demand. The move is designed to offset anticipated economic turbulence from U.S. trade restrictions and ensure resilience at home.
A Test of Economic Sovereignty
India’s stance signals more than an energy policy—it’s a message to global powers that New Delhi will defend its sovereignty in trade decisions. While the U.S. has sought to weaponize tariffs to curb Russia’s reach, India’s refusal illustrates the complexity of geopolitics in an era where energy flows often trump alliances.
As Sitharaman’s words suggest, when it comes to oil, India will chart its own course—shoals, storms, and tariffs be damned.
