Big Take Asia Why the US-India Trade Deal Hinges on Russian Oil
Feb 5, 2026
Sudhi Ranjan Sen, Bloomberg reporter in New Delhi who covers India’s economy and geopolitics. He unpacks a surprise US-India tariff rollback. He explains how a Russian oil caveat complicates the deal. He discusses who actually decides India’s crude purchases and the limits of alternatives.
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Tariff Cut Revives U.S. Market For India
- The announced deal would cut U.S. reciprocal tariffs on Indian imports from 50% down to about 18% and remove the extra 25% on Russian-linked purchases.
- Markets and exporters reacted positively but India remains cautious about reliance on the U.S. after a year of shocks.
India's Growth Stayed Resilient
- India's economy held up better than feared with revised growth near 7.4% despite the tariffs.
- The market reaction (Nifty surge, firmer rupee) shows tangible relief from the deal's announcement.
Exporters Rushed Shipments To Beat Tariffs
- Exporters front-loaded shipments ahead of the 50% tariffs to soften the blow.
- Those rushed supplies ran out, creating a feared crunch before the deal eased pressures.