Russia Crude Oil Discount: Despite America’s imposition of 25 percent tariff on the purchase of crude oil from Russia, India is ready to increase the import of Russian crude oil in the coming times. US President Donald Trump has imposed 50 percent tariff on the import of Indian goods.

America wants India to stop buying oil from Russia. America argues that by this India is financially helping Russia in its war with Ukraine. However, despite pressure from America, India maintained its stand. India says that this decision taken by it to meet the energy needs of the country is commercially and strategically right.

Russia’s attractive offer for India

Here, amid the ongoing trade talks with America, India is going to accelerate the import of Russian crude oil in the coming months. This means that somehow Trump’s move seems to be proving counterproductive. According to a Bloomberg report, Russia is going to give ‘double discount’ to India on the import of crude oil. Russia has offered a discount of $ 2 to $ 2.50 per barrel on loading of Brent crude to India from November. This discount is so tempting that it will almost offset the impact of the American tariff. In July-August, the discount given by Russia had reduced to about $ 1 per barrel. During that time Russia was emphasizing the needs of the domestic market.

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Oil is the backbone for the economy of any country. Today India is among the largest oil importing countries in the world. Whether it is petroleum, diesel or other hydrocarbons. Without them, it is difficult to run the economy of modern India, but this tradition is not only today. Reversing the pages of history, it is known that the roots of oil imports extend to the Mughal period. Even though crude oil (crude oil) was not imported during that period, various types of oil and perfumes were called from foreign countries. The luxury life of the Mughals and the use of oil in their daily life shows the importance of this tradition.

Irfan Habib’s book The Agrarian System of Mughal India mentions that at that time, mustard, castor, flaxseed and sesame oil were prepared in large quantities in India. These oils were used in cooking. Mustard oil was the most common option to light a lamp. These oils had an important role in the body massage and medicinal uses. After extracting oil, the remaining part was used in animal food. Apart from this, a special attraction of Mughals was towards fragrant oils and perfumes. In the era of Akbar, the factory-e-AW was established, where roses prepared oil and perfumes from rose, jasmine and sandalwood.

Foreign oil and business relationship of Mughals
The Mughals used to get many oils in India, but olive oil and rose water had to be ordered from Persia (Iran) and Arabia. Olive oil was a favorite for foreign feasts and medicinal experiments. It was used a lot in rose water royal palaces and religious rituals. Along with oil, the Mughals were also inclined towards alcohol and opium. Alcohol was mainly sourced from Iran and Central Asia. Jahangir and Babur were considered fond of alcohol and opium, while Aurangzeb tried to stop it. This business dependence highlights the luxury of the Mughals and the global economic links of that era.

Iran and oil reserves then and now
Even today, when the oil import-export is discussed, Iran’s name definitely comes. According to the report of the World Population Review, the first number is Venezuela, the second on Saudi Arabia and Iran on the third. Iran has a huge reserves of about 2,08,600 million barrels of oil. This is the reason that Iran has remained an important center of oil trade since ancient times.

Modern India and oil imports
India today imports about 85% of its energy needs. India’s oil imports from Russia have increased significantly in recent years. Despite the pressures of America and Europe, India has made it clear that it will give priority to its energy security. During the Trump’s era, India was threatened with buying oil from Russia, but India has continued this policy. It is clear that the import of oil that started from the Mughal era is still an important part of India’s economic strategy.

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Russian crude oil import: Buying India’s oil from Russia is not pleasing to America. Due to this, the US President increased the baseline tariff of 25 percent imposed on India to 50 percent. This extra 25 percent has been imposed as a penalty on India for the purchase of oil from Russia. However, a report by the Indian Express quoted official trade data stated that the import of Russian oil has helped Indian refineries to save at least $ 12.6 billion in about three years.

India depends on the import of crude oil

During the analysis of official trade data, the price of India’s Russian oil imports was compared to other countries with crude oil. However, the higher quantity of savings was estimated earlier, because the discount on Russian crude oil has also been reduced over time. However, whatever savings have been done, it is also no less. That is, India is in profit even after Trump’s penalty and tariffs are imposed.

India is the third largest country in the world in terms of oil consumption after America and China. India imports 80 percent oil of its need. In such a situation, if India sidelines Russia like other Western countries, then how much its import bill would have increased. In such a situation, even after the restrictions of Western countries, India continued to import crude oil from Russia. If India does not do so much dependent on the import of crude oil, then the oil prices at the international level start touching the sky.

America wants to demolish Russia’s economy

Trump’s government in America sees India’s mass import of Russian crude oil as a means to eliminate the war on Ukraine by putting pressure on Russia. Since crude oil exports are a very big source of earnings for Russia and India is its second largest buyer after China. In such a situation, if India stops purchasing crude oil from Russia, then it will have a big impact on the economy of Russia and this is what America wants to attack the economy of Russia directly. But India is not ready to bow down to the US pressure on the purchase of oil from Russia as Russia has been a strategic ally of India for a long time. India is not ready to renounce its strategic autonomy.

Impact on India’s exports

Of course, the installation of heavy tariffs of America will have a major impact on the export of Indian goods. The Global Trade Research Initiative (GTRI) estimates that India’s exports to the US will decrease from US $ 87 billion in 2024-25 to about $ 49.6 billion in 2025-26. The interesting thing in this is that Trump, who has imposed tariffs on India, has not yet taken any such action against China, the biggest buyer of Russian oil.

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