New Delhi, Sept. 21 -- The United States' latest pressure on India over its purchases of Russian crude has raised fresh questions about the future of bilateral ties and Washington's broader approach towards India's economic rise.
The issue has gained prominence after US President Donald Trump signed the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 on September 19. The legislation gives the US administration the authority to impose tariffs of up to 100% on countries that continue buying Russian oil and gas, putting major importers such as India and China in focus. The development comes 25 years after Washington lifted sanctions imposed on India following its 1998 nuclear tests. While those earlier sanctions were linked to India's nuclear programme, the current pressure is centred on New Delhi's continued purchase of Russian energy.
The US legislation has already drawn concern in India, with the Ministry of External Affairs warning that the issue could have implications for bilateral relations. India has maintained that its energy decisions are guided by national requirements, including availability, affordability, market conditions and commercial viability. Russian crude accounted for nearly 52% of India's total crude imports in July 2026, making any sudden shift away from Russian supplies a significant challenge. India is the world's third-largest oil importer and relies heavily on overseas supplies to meet its domestic consumption. India has also argued that securing affordable energy is essential for protecting consumers from global price shocks. New Delhi has maintained that its priority is to safeguard the country's energy security while protecting its wider trade and economic interests.
The latest US approach has also revived comparisons with Washington's past strategy towards China. US officials have previously indicated that they do not want to repeat what they describe as mistakes made in their engagement with Beijing. Over several decades, the US supported China through greater market access, investment, technology transfers and expanding economic ties. American companies also shifted significant manufacturing operations to China. The policy helped fuel China's transformation into one of the world's largest economies and a major manufacturing power.
US policymakers now appear wary of allowing another Asian economic giant to develop into a potential strategic and commercial competitor. India's rapid economic growth, expanding manufacturing sector and growing global influence have therefore become an important factor in Washington's calculations. However, India's foreign policy has traditionally emphasised strategic autonomy rather than exclusive alignment with any major power. New Delhi maintains economic and strategic relationships with the US, Russia, France, China and other countries based on its own interests. India's dependence on imported crude also makes the issue particularly sensitive. Replacing Russian oil would require securing alternative supplies at competitive prices, something that could become difficult when global energy markets are already under pressure.
India's ambassador to the US, Vinay Mohan Kwatra, has stressed that energy security is a strategic necessity for the country's 1.4 billion people. He has said India's energy choices are based on availability, affordability, market conditions and commercial viability. The current situation is not without precedent. Following India's 1998 nuclear tests, the US imposed a series of sanctions, including restrictions on defence supplies, technology transfers and financial assistance. India continued to engage with Washington while developing its economy and maintaining its strategic positions. The sanctions were eventually lifted by the George W Bush administration in 2001, paving the way for a gradual improvement in bilateral relations. The relationship expanded further in subsequent years, culminating in the 2008 India-US civil nuclear agreement.
The latest tariff threat therefore comes at a time when India-US relations are already facing strains over trade and energy. While the US seeks to pressure India to reduce its dependence on Russian crude, New Delhi has shown little indication that it is prepared to compromise its energy security or strategic autonomy. For India, the challenge will be to manage the economic impact of any potential US tariffs while diversifying energy and defence partnerships and strengthening domestic manufacturing. At the same time, continued engagement with Washington remains important for both countries. The dispute over Russian crude could therefore become another major test of India's strategic autonomy and the long-term trajectory of India-US relations.
Published by HT Digital Content Services with permission from Millennium Post.