India US Trade Deal: While announcing the India-US trade deal late on Monday night, US President Donald Trump announced a major reduction in the heavy tariff imposed on India, under which the duty has now been reduced to 18 percent. This deal, reached after several weeks of uncertainty, is being considered an important step in the relations between the two countries. Prime Minister Narendra Modi strongly welcomed this decision and said that this will further strengthen mutual cooperation between the two biggest democracies of the world.

Earlier, America had imposed a total tariff of up to 50 percent on India for buying cheap crude oil from Russia, which has now been removed. Trump claimed on Truth Social that India has agreed to stop purchasing oil from Russia, although PM Modi did not make any comment on purchasing oil from Russia in his statement.

What are the four conditions on Trade Deer-

1-According to the terms of the trade deal, India will reduce tariffs and non-tariff barriers on American products and will further open its market to American companies.

2-America has talked about removing the 25 percent additional tariff imposed on oil purchases from Russia, although there has been no official confirmation on this and different agencies have given different information.

3-Trump directly linked this agreement to the Ukraine war and said that there will be pressure on Moscow not to buy oil from Russia and this can help in ending the war. He also said that India will buy more oil from America and possibly Venezuela.

4- Apart from this, under the deal, India will increase the purchase of products like energy, technology, agricultural products, coal including petroleum, defense, electronics, pharma, telecom and aircraft from America, which is expected to give a big boost to American exports.

Industry welcomed

Top leaders of Indian business on Tuesday said the India-US trade agreement will give new impetus to India’s growth ambitions and help make the country a globally competitive manufacturing and innovation hub. Industry leaders including Bharti Enterprises founder and chairman Sunil Mittal, Aditya Birla Group’s Kumar Mangalam Birla and Mahindra Group’s Anish Shah described it as a historic step with the potential to transform the bilateral trade and investment landscape.

Describing it as an important step towards strengthening trade and investment ties, Mahindra Group CEO and Managing Director Anish Shah said that this deal will provide concrete support to India’s ambitions with its strong growth path.

Sunil Bharti Mittal said that this agreement is a much-awaited and important achievement for both the countries, which will open immense opportunities for investment and development, and this series of free trade agreements is a proof that India is playing an active role at the center of global trade structures.

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India To Cut Russian Crude Oil Imports: India is going to cut direct purchases of crude oil from Russia from the end of November. This step is being taken in view of the new US sanctions imposed on two major Russian oil companies – Rosneft and Lukaoil – from November 21. According to news agency PTI, analysts say that these restrictions may force Indian refinery companies to change their oil purchasing patterns.

Major Indian companies will reduce purchases of Russian oil

Three major companies that account for more than half of India’s total Russian oil imports – Reliance Industries Limited (RIL), Mangaluru Refinery and Petrochemicals Limited (MRPL) and HPCL-Mittal Energy Limited (HMEL) – are set to reduce direct purchases of Russian oil in compliance with the new US sanctions. Reliance has a long-term supply agreement with Rosneft, while MRPL and HMEL have decided to postpone future Russian oil shipments.

America has announced that strict economic sanctions will be imposed on Rosneft and Lukaoil from November 21. All American assets and financial transactions of these companies will be banned. Apart from this, if institutions of other countries also do large transactions with them, then “secondary sanctions” can also be imposed on them.

In the first half of the year 2025, India had imported about 18 lakh barrels per day of crude oil from Russia, in which RIL, MRPL and HMEL had more than half the share. However, the Gujarat-based Vadinar refinery (Nayara Energy, in which Rosneft has a partial stake) will continue its existing Russian oil procurement pattern, as it is already under EU sanctions and is primarily dependent on Russian crude.

Russian oil supply may fall in December

Sumit Ritolia, principal analyst at shipping data firm Kpler, says Russian crude oil shipments will see a decline after November 21 as most Indian refineries will reduce or stop direct purchases from Rosneft and Lukaoil in compliance with US sanctions. Kepler forecasts a sharp decline in Russian oil supplies in December 2025, although the situation could gradually normalize through new trade routes and alternative channels as early as 2026.

To reduce dependence on Russian oil, Indian refiners are now increasing oil purchases from West Asia, Latin America, West Africa, Canada and America. India’s US oil imports stood at 5.68 lakh barrels per day in October — the highest since March 2021.

Ritolia further said that however, the cost of sourcing oil from other countries is higher, which may reduce the price advantage. “Despite this, India’s crude oil sources are likely to become more diverse and balanced in the coming months.” Overall, the US sanctions have triggered the process of reshaping India’s energy strategy, where striking a balance between security, cost and supply stability has become a new priority.

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Rupee vs dollar: The Indian rupee fell 29 paise to 87.95 against the dollar during early trade on Tuesday, which is the lowest level of rupee in the last 6 months. Forex traders believe that this pressure on the rupee can remain as well as this week, as the US has warned to impose high tariffs on India for buying oil from Russia.

In the Interbank Foreign Exchange Market, the rupee opened with a weak trend at 87.95 against the US dollar, which shows a decline of 29 paise compared to Monday’s 87.66.

Why the rupee declines?

The dollar index, which reflects the status of the US dollar against the six major currencies, rose 0.04 percent to 98.81. The domestic stock market also saw weakness, where the BSE Sensex fell by 200.40 points to 80,818.32 in early trade, while NSE Nifty fell 58.90 points to reach 24,663.80. International Brent crude fell 0.28 percent to $ 68.57 per barrel.

The impact of tariff on the stock market

According to the stock market data, foreign institutional investors (FII) were purely selling on Monday. He sold shares worth Rs 2,566.51 crore. Due to America’s warning, there was tension in the market. The US administration has accused India of buying a large amount of crude oil from Russia and selling it with profits.

India has reacted strongly to this. The Ministry of External Affairs said that India has been improperly targeted by the US and the European Union due to importing oil from Russia after the Ukraine struggle started. The ministry clarified that India started this oil imports because traditional supplies were diverted to Europe after the struggle. The statement also said that at that time the US itself encouraged India to do so for the stability of the global energy market. India’s purpose has always been to maintain the cost of energy for the consumers of the country.

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Crude oil prices: There is a major decline in crude oil prices amidst business tension in the international market. In the month of April, the average price of Indian baskets has reached a low of four years i.e. 47 months low. In April, the price of crude oil came to Rs 68.34, which was Rs 72.47 in the month of March, ie there is a decrease of about 5.6 percent. According to data from Petroleum and Analysis Cell (PPAC), this is the biggest decline since May 2021.

PPAC officials believe that the price of baskets will continue to be reduced at the moment. This has happened after the announcement of tariff from America, when the price of crude oil fell. On Sunday, Brent crude futures rose over by the previous week and stood at $ 67.96 per barrel.

The Standing Committee of Parliament on Petroleum emphasized the needs of importing various grade of crude oil in the broad range last year, which reduced the cost of Indian crude baskets. The reason for the price of Indian basket is high is the levy on the Asian premium. It increases the crude oil of West Asia.

The current data shows that in the financial year 2025, the amount of import of the country’s crude oil has been 4.2 percent i.e. 24.24 million tonnes, which is more than 23.23 million tonnes of financial year 2024. Significantly, since the commencement of Ukraine war, India has imported a large amount of oil from Russia and is still doing, Russia became the largest supplier in India in May 2023 and around 19.6 lakh barrels were imported daily.

Indian baskets of crude oil are used as an indicator of the price of crude oil in India. The Government of India keeps an eye on this index while making any decision on domestic prices.

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