India will continue oil imports from Russia for this reason; ready to withdraw but under one condition

NEW DELHI: Russian invasion in Ukraine and the economic sanctions imposed on Russia by western countries have affected India in several ways. The rising fuel and gas prices have had a huge impact on India. The western countries and the media have equally criticized India’s decision to purchase oil from Russia bypassing all economic sanctions. However, what could be the reason behind India’s independent stance and its decision to import Russian oil ignoring the dissatisfaction of major powers like the US?

Australian Trade Minister Dan Tehan had recently said that all democratic nations should work together to protect the laws enacted following World War II. However, India need not prioritize such criticisms. The US and Australia are rich countries that export oil. These are the countries that have made huge profits out of the oil, gas price hikes following the sanctions.

However, India, a country which is 70 percent dependent on imports, has been hit hard by the sanctions. The inflation rates in the country, which was 12 percent before the war, had even pushed India’s economy to the brink of collapse. The price of imported gas has doubled. The consumer price inflation crossed 6.07 percent from the RBI accepted maximum rate of 6 percent.

With the increase in fuel and LPG prices, protests began to erupt in various parts across the country. Following which, the government cut the excise duties on fuels and the value added tax on LPG in order to calm the protests. Even though the government’s action comes in as a relief to the people, it will slow down economic growth and will adversely affect the economic condition of the country. It will also result in an increase of the fiscal deficit, which had gone up to 10 percent even before the war.

Invasions are wrong. India should definitely oppose it. But, developing countries like India often have to keep aside philosophies in order to protect strategically significant relations such as the India-Russia ties. In addition, India also requires assistance to overcome the burden of anti-Russia sanctions.

Why should India refrain from purchasing oil from Russia while Europe continues to do so? India can definitely withdraw from Russian trade agreements if western countries are ready to provide the price concessions put forward by Russia. If not, India has no other options but to continue oil imports from Russia.