NEW DELHI, October 17. /TASS/. US President Donald Trump’s decision to lift tariffs and restrictions in accordance with the Russia and Iran sanctions act, came as an economic relief for India and its exporters, Indian experts say.
"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," the PTI news agency quoted industry chamber FICCI's Secretary General Anant Swarup as saying.
In his words, continued access to competitively priced Russian crude oil will allow bringing down raw material costs, easing inflationary pressure and supporting economic growth.
"At the same time, a waiver that can be modified or withdrawn at short notice does not provide the durable predictability that businesses need for long-term planning," the expert continued.
In his words, FICCI hopes that both India and the United States will ensure that such measures to do not complicate the ongoing trade negotiations, and that bilateral economic partnership is based on stability, transparency, mutual benefit and trust.
In turn, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said that this step will prevent serious risks for Indian exports and is designed to strengthen buyer confidence and order flows, particularly in employment-intensive sectors such as textiles, leather, gems and jewelry, and machine building.
"It also creates a positive environment for advancing India-US trade discussions," he added.
However, according to Sahai, the waiver remains subjected to a review, which creates 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 September 18, Trump signed into law a bill passed by Congress that provides for tightening sanctions against Russia’s top political and military leadership and state·owned companies. The law provides for a 500% increase in duties on Russian supplies, as well as a 100% increase for the countries that are key buyers of Russian energy. According to the law, the Washington administration may not take these measures if it believes that this does not align with US interests. Trump signed an executive order saying that the key provisions of the law will not be applied at present.