NEW DELHI–A U.S. decision to ease tariff and sanctions measures tied to purchases of Russian oil and gas could provide relief to Indian exporters, improve business confidence and strengthen trade relations between India and the United States, according to a new report.
The report by Times Kuwait said an executive order recently signed by President Donald Trump could help revive bilateral trade momentum, support employment and advance the two countries’ goal of reaching $500 billion in annual bilateral trade by 2030.
The measure reduces the immediate threat of additional tariffs of up to 100% on Indian exports associated with purchases of Russian energy, easing uncertainty for businesses that depend on access to the American market.
According to the report, the waiver could give Indian exporters greater flexibility to plan shipments, negotiate contracts and make investment decisions without facing the same level of concern over potential trade restrictions.
The development is particularly important for industries such as engineering goods and industrial machinery, where exporters depend on long-term purchasing agreements, competitive pricing and reliable delivery schedules.
U.S. importers could also benefit from greater predictability when evaluating Indian suppliers and negotiating future contracts.
The report suggested that reducing the risk of additional trade penalties would allow businesses in both countries to devote more attention to expanding commercial relationships.
“Although the waiver does not eliminate every tariff-related challenge, it reduces the risk of further escalation in trade tensions and provides an opportunity to rebuild momentum in one of India’s most important export markets,” the report noted.
The United States remains India’s largest destination for merchandise exports, purchasing products across industries including pharmaceuticals, engineering, electronics, manufacturing and labor-intensive goods.
Despite trade restrictions and tariff-related uncertainty, India’s merchandise exports to the United States recorded modest growth during the previous fiscal year.
Exports increased from approximately $86.5 billion in fiscal 2025 to $87.3 billion in fiscal 2026, representing growth of about 0.9%.
More recent figures suggest that trade activity has accelerated.
Indian merchandise exports to the United States reached $8.02 billion in September 2026, an increase of 48% from $5.42 billion in September 2025.
The report indicated that easing trade tensions could create additional opportunities for Indian manufacturers and exporters while strengthening supply chain relationships between the two economies.
It also emphasized the importance of cooperation beyond traditional merchandise trade, particularly in energy, advanced manufacturing, technology and investment.
“Greater coordination on energy, manufacturing, technology, investment and supply chains can help both countries identify shared interests and reduce the risk of future disruptions,” the report noted.
While the waiver does not resolve all outstanding trade disagreements, the report suggested that it could provide a foundation for more stable commercial ties and renewed progress toward the countries’ long-term bilateral trade objectives. (Source: IANS)
