New Delhi: US President Donald Trump's waiver of sanctions, restrictions and tariffs under the Sanctioning Russia and Iran Act (SRIA) is a relief for India's energy security and exporters, as continued access to competitively priced Russian crude will help moderate input costs, ease inflationary pressures and support economic growth, experts said.
They said the decision is a much-needed boost for Indian industry and will further strengthen bilateral trade relations.
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"While the waiver of additional duties under the US Russia-related sanctions law provides temporary relief, it is a welcome development for India's energy security," industry chamber FICCI's Secretary General Anant Swarup said.
He said continued access to competitively priced crude oil from Russia will help moderate input costs, ease inflationary pressures, and support India's growth momentum.
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"At the same time, a waiver that can be modified or withdrawn at short notice does not provide the durable predictability that businesses need for long-term planning," Swarup said, adding FICCI hopes that both India and the US will ensure that such measures do not complicate the ongoing trade discussions, and that the bilateral economic partnership is guided by stability, transparency, mutual benefits and trust.
Welcoming the decision, international trade expert and Hi-Tech Gears Chairman Deep Kapuria said the move would help in ironing out the remaining differences in signing the Bilateral Trade Agreement.
"US President Trump providing a waiver under the Lindsey Graham Act by invoking Section 15 of the Act is a welcome step. For Indian industry, it is a much-needed boost to further strengthen the bilateral trade relations," Kapuria said.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said this pragmatic step averts a major risk to India's exports and should strengthen buyer confidence and order flows, particularly in employment-intensive sectors such as textiles, leather, gems and jewellery, and engineering goods.
"It also creates a positive environment for advancing India-US trade discussions," he said.
However, Sahai said, the waiver remains reviewable, leaving some uncertainty over future contracts and investments.
"Exporters, especially MSMEs, need long-term tariff predictability. We hope this relief paves the way for a durable trade understanding, while India continues to strengthen competitiveness and diversify its export markets," he added.
On October 16, Trump waived sanctions, restrictions and duties under SRIA, citing national interest. In an executive order on Friday night, Trump said it is in the US' "national interests" to withhold some of the sanctions.
The law has authorised the President to impose duties up to 100 per cent on countries buying Russian crude and gas such as India and China.