India faces mounting pressure from the United States regarding its continued purchase of discounted Russian oil, leading to a delicate balancing act in its energy policy. This comes after the US imposed 50% tariffs on Indian goods and President Donald Trump claimed Indian PM Narendra Modi privately agreed to end Russian oil purchases.

• India, the world’s third-largest oil importer, bought $52.7 billion of Russian crude last year, representing 37% of its oil bill.
• The surge in Russian oil imports, driven by discounts after Western sanctions, saved India roughly $5 billion annually, or 3-4% of its crude import bill.
• Replacing Russian oil with lighter crude grades from the US would require costly refinery reconfigurations, according to Ajay Srivastava, former Indian trade official and head of Global Trade Research Initiative (GTRI).