GTRI Proposes Three-Step Plan to Safeguard India–U.S. Trade Interests

The Global Trade Research Initiative (GTRI) has unveiled a detailed three-step strategy to protect India’s trade interests with the United States. The proposal, coming as bilateral talks advance, outlines steps to reduce risks from sanctions, restore tariff parity, and revive negotiations on equitable trade terms.

Halting Russian Oil Imports Under Sanctions

The GTRI recommends that India immediately cease crude oil imports from Russian firms under US sanctions, notably Rosneft and Lukoil, which together produce more than half of Russia’s oil output. Continuing such imports could expose India to secondary sanctions that may cripple access to global financial systems like SWIFT, restrict dollar settlements, and disrupt vital port and banking operations. The report warned that these consequences would outweigh the impact of existing tariffs.

Seeking Withdrawal Of Punitive US Tariffs

Once imports from sanctioned Russian entities are halted, GTRI advises India to demand that Washington withdraw the 25% “Russian oil” tariff. Introduced in July, this duty pushed India’s overall tariff burden in the US to 50%, significantly eroding export competitiveness. Indian exports to the US reportedly fell by 37% between May and September. Removing the punitive duty could halve the burden and help restore India’s export growth trajectory.

Resuming Trade Talks On Balanced Terms

The final phase of the GTRI plan calls for India to resume bilateral trade negotiations with the US only after tariff rates normalise. The think tank proposes that India seek tariff parity comparable to other major partners, targeting an average duty rate of 15%. It also urges duty-free access for high-priority sectors including textiles, pharmaceuticals, and gems and jewellery to enhance competitiveness in the American market.

Exam Oriented Facts

• Rosneft and Lukoil account for around 57% of Russia’s crude output.
• US introduced a 25% “Russian oil” tariff on July 31, raising India’s duty burden to 50%.
• India’s exports to the US dropped 37% between May and September 2025.
• GTRI’s three-step plan involves halting Russian oil imports, removing tariffs, and restarting fair trade talks.

Prospects Of A Renewed Trade Agreement

Commerce Minister Piyush Goyal confirmed that trade negotiations with the US have reached an advanced stage. A proposed agreement may cut tariffs on Indian exports from 50% to 15%, in exchange for India scaling down Russian oil purchases and expanding US energy imports. With both sides signalling intent to rebuild economic ties, GTRI’s roadmap offers a pragmatic approach to rebalancing trade relations while safeguarding India’s strategic autonomy.