Former RBI Gov. Raghuram Rajan: Don't think India gains a lot by buying Russian oil

US-India Relations & Tariffs - The US imposed a 50% tariff on a US ally (India) for purchasing Russian oil [1] - India faces a 25% tariff on all its goods, plus an additional 25% for trading oil with Russia [3] - The Indian leadership signals a search for alternatives due to perceived unreliability of the US [4] - A short-term deal with India would signal India as a possible "China plus one" destination [15] - A quick deal with India, removing the 25% tariff, would greatly benefit the India-US relationship [16] India's Stance & Alternatives - India is perceived as confused regarding its relationship with the US [3] - India is signaling it may seek closer ties with countries the US considers adversaries [4] - India doesn't gain much from buying Russian oil; before the war, it accounted for about 2% of Indian purchases [7] - India has largely adhered to the $60 per barrel price cap on Russian oil [8] Diplomacy & Potential Resolutions - Diplomacy, rather than direct tariffs, would have been a more effective approach [10] - Back channel discussions are hoped to be underway to reverse the 50% tariffs [11] - If the US requests India to stop buying Russian oil through back channels, India would likely comply [9] - A potential deal with India could involve India slowing down or terminating purchases of Russian oil [16]