ADITYA RAJ DAS
Finance Minister Nirmala Sitharaman has said that India will continue purchasing Russian oil, stressing that decisions will be guided solely by national interest.
Speaking to CNN-News18 Sitharaman said “We will have to take a call which (supply source) suits us the best. So we will undoubtedly be buying it.”. She further stressed that India, the world’s third-largest oil importer, must act in its economic interest.
The minister added that crude oil and refined fuels account for a major share of India’s foreign exchange spending. “Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs whether in terms of rates, logistics, anything,” the news channel quoted finance minister as saying.
The remarks come after US President Donald Trump imposed a 50% tariff on Indian imports last month, alleging that New Delhi’s oil purchases were funding Moscow’s war in Ukraine.
Nirmala Sitharaman further said the government is preparing a relief package for exporters affected by the punitive US tariffs. She added that structural reforms such as the Goods and Services Tax (GST) would help cushion the impact, noting, “The potential tariff impact will be offset by reforms like GST,” the television network reported.
Trump, who has sought to broker a resolution to the conflict, renewed his criticism on Friday in a post on Truth Social days after Prime Minister Narendra Modi and his Russian counterpart Vladimir Putin attended a summit in Tianjin hosted by Chinese President Xi Jinping.
“Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” Trump wrote.
In an interview to a TV channel, she said, whether it is Russian oil or anything else, we will take a call based on what suits our needs in terms of rates and logistics. Mrs Sitharaman’s reiterated that the contribution of crude oil to India’s import bill is the highest.
She said that the new GST regime will improve consumption by citizens and it will not impact capital expenditure. Mrs Sitharaman said, 99 per cent of all the goods and services are now either in the zero, five or 18 per cent bracket.
She said, it was the first time that both the issue of Compensation Cess and a comprehensive proposal on GST have been taken up by the Centre. The Minister said, Petroleum and alcohol products will be outside of GST.
The Minister informed, government is working on measures to support exporters who are impacted by the 50 per cent US tariffs. She said, a package for exporters is being prepared.
Mrs Sitharaman said, the objective of Atmanirbhar Bharat was not only about producing everything in the country, but also about self-respect in the face of uncertain global trade policies.