Amidst global politics and energy diplomacy, a big signal has emerged regarding India-US trade relations. US Treasury Secretary Scott Besant’s statement during the World Economic Forum in Davos has created a stir in the international markets. He hinted that there is a way to remove the additional 25% tariff imposed on India for purchasing Russian oil. This statement is being seen as a possible big relief for India.
Speaking to American media organization Politico, Scott Besant said that the purchase of Russian crude oil by Indian refineries has almost ended after the US tariffs. He called it a big success for America. According to Besant, the tariffs are still in place, but there is a way to remove them if India changes its energy supply strategy.
Threat of 500% duty and India’s tough stance
Along with this statement, there is also intense discussion on a proposed bill in America, in which it has been said that duty up to 500% will be imposed on countries purchasing Russian oil. However, India has made it clear that its energy policy is based on the India First principle. External Affairs Ministry spokesperson Randhir Jaiswal said that India is keeping an eye on this bill, but affordable energy for 140 crore people is its priority.
Besant’s sharp attack on Europe
Scott Besant did not even spare the European countries in this entire controversy. He alleged that Europe is indirectly funding Russia’s war by buying refined oil from India. He called it irony and stupidity. Besant said that Russian crude oil is being refined in India and is reaching Europe, due to which Russia is actually benefiting.
EU-India FTA and the changed global equation
Meanwhile, there is also a lot of stir regarding the proposed Free Trade Agreement (FTA) between the European Union and India. European Commission President Ursula von der Leyen has called it the Mother of All Deals. Europe does not want to spoil relations with India regarding this agreement with 2 billion people and 25% share of global GDP.
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