Saralnama
Crisil reported that the US has doubled tariffs on Indian products to 50% due to India’s purchases of Russian oil, effective August 27, 2025. This increase adds to existing levies and may dampen private corporate investment sentiment despite healthy balance sheets. The ratings firm noted that free trade agreements could improve investor confidence by reducing tariff barriers and providing predictable trade policies. US tariffs on India now exceed those on Bangladesh, Vietnam, and Indonesia. Challenges for Indian private sector investment include global supply chain disruptions from geopolitical tensions and domestic inefficiencies such as high power and land costs. Opportunities arise from new trade agreements like the UK-India FTA and corporate investment capacity. The government has been driving investments amid muted private capital expenditure. The tariff increase follows US President Donald Trump’s efforts to pressure India over its Russian oil imports. Indian refiners continue to import Russian crude, prioritizing national interests despite the tariffs. The US remains India’s top export destination, but higher duties risk harming smaller exporters and shifting trade to competitors. (Updated 27 Aug 2025, 13:26 IST; source: link)