New Delhi: The United States’ decision to ease tariff and sanctions-related measures affecting major buyers of Russian-origin oil and gas could provide relief to Indian exporters, restore business confidence and create fresh momentum in bilateral trade, according to a report by Times Kuwait.
The report said an executive order recently signed by US President Donald Trump could help strengthen commercial ties between the two countries, support employment and advance their ambition of achieving $500 billion in bilateral trade by 2030.
The move reduces the immediate threat of additional tariffs of up to 100 per cent on Indian exports linked to purchases of Russian energy, offering businesses greater clarity about the trade environment.
With the risk of further tariff escalation eased, Indian exporters and their US counterparts could find it easier to plan shipments, negotiate contracts and make investment decisions. Greater predictability is particularly important for sectors such as engineering goods and industrial machinery, which depend on long-term procurement arrangements, competitive pricing and reliable delivery schedules.
The report noted that US importers could now evaluate Indian suppliers with less immediate concern over additional tariff exposure. Businesses in both countries may consequently be able to devote greater attention to expanding commercial opportunities rather than responding to repeated policy uncertainties.
However, the report cautioned that the waiver does not resolve all tariff-related challenges. It nevertheless offers an opportunity to ease trade tensions and rebuild momentum in one of India’s most important export markets.
The United States remains India’s largest destination for merchandise exports, including manufactured goods, pharmaceuticals, engineering products, electronics and labour-intensive products. Stability in trade relations is therefore significant for Indian manufacturers seeking to maintain their competitiveness and expand their presence in the American market.
India’s merchandise exports to the US increased from approximately $86.5 billion in FY25 to $87.3 billion in FY26, representing growth of around 0.9 per cent despite tariff-related pressures during the year.
Exports recorded a sharper increase in September 2026, reaching $8.02 billion compared with $5.42 billion in September 2025, a year-on-year rise of approximately 48 per cent.
The report further highlighted the importance of closer coordination between the two countries in energy, manufacturing, technology, investment and supply chains. Greater cooperation in these areas could help identify shared economic interests, expand business opportunities and reduce the risk of future disruptions.
While the tariff relief could improve near-term business sentiment, the longer-term impact on bilateral trade will depend on the evolution of trade policies and the ability of both countries to address remaining commercial barriers.
-IANS