India Pulls Back from Trade Deal Due to Strict US Conditions. Former Finance Secretary Subhash Garg stated that India has saved $2.5 billion by purchasing cheaper oil from Russia.
India-US Trade Relations: Tensions have been observed in India-US relations for some time. Relations between the two countries have soured since Operation Sindoor, and a new dispute has now arisen over the trade deal. Former Finance Secretary Subhash Garg says that India may now backtrack from the trade agreement with the US because America's conditions are very stringent.
Relations Deteriorated After Operation Sindoor
Tensions in India-US relations became openly apparent after Operation Sindoor. Following the failure to receive credit for brokering a ceasefire between India and Pakistan, the Donald Trump administration adopted a strict stance against India. The Trump government announced tariffs of up to 50 percent on India. Since this step, strains in economic and political relations between the two countries have been increasing.
India, in view of these decisions by the US, clearly refused to concede. Now, the news is that India may also pull back from the trade deal with the US.
Major Statement by Former Finance Secretary
In a conversation with NDTV, former Finance Secretary Subhash Garg made several significant revelations. He stated that Donald Trump is continuously claiming that India is making huge profits by purchasing oil from Russia at cheaper prices. However, Subhash Garg clarified that Trump's statement is entirely a political stunt. The former Finance Secretary said that the economic reality is different, and the Trump administration is using it as a weapon against India.
How Much Savings from Oil Purchase from Russia?
According to Subhash Garg, India is saving approximately $2.5 billion annually, or about ₹2.22 lakh crore, by purchasing oil from Russia. Trump is repeatedly exaggerating this saving to put pressure on India and to enforce his conditions in the trade agreement.
He explained that India is purchasing oil from Russia at $3-4, or approximately ₹264-352 per barrel. This deal is in accordance with international regulations and is not illegal.
India's Stance on the Trade Deal
Former Finance Secretary Subhash Garg clarified that India has withdrawn its steps regarding the trade deal with the US. Although the doors for formal talks have not been shut, in the current situation, India is not in a mood to concede.
According to Garg, no country would prefer to trade with such high tariffs and stringent conditions. Especially when it comes to agriculture and consumer goods, India will not compromise on the interests of its farmers and common consumers.
No Compromise on Farmers' Interests
Subhash Garg stated that Prime Minister Narendra Modi has also made it clear that India will not compromise on the interests of its farmers. America's demand was that India should fully open its agricultural market to American companies. However, the Indian government believes that this will have a severe impact on Indian farmers and will destabilize the local market.
Trump's Political Tactics
The former Finance Secretary termed Trump's statements as political tactics. He said that the figures Trump is presenting regarding India are far from the truth. The reality is that India is purchasing cheaper oil from Russia, keeping its economic policies in mind, to meet the country's energy needs and to mitigate the impact of rising oil prices in the international market.
Advice to Improve Relations with China
Subhash Garg also commented on India-China relations. He said that imposing a ban on all investments coming from China has been India's biggest economic mistake. If India opens its market to Chinese investors, it can reduce its economic dependence on other countries. He stated that improving relations with China on the economic front can be beneficial for India, as China's role is significant in terms of investment and technology.
