Trade analysts based in India characterised the tariff reductions and sanctions-related restrictions lifted under the Russia and Iran frameworks as policy adjustments that opened up additional fiscal room for exporters.
FICCI Secretary General Anant Swarup conveyed to PTI that the temporary pause on additional duties linked to US sanctions law targeting Russia gives India's energy supply chain some near-term relief, while also pointing out that continued access to affordably priced Russian crude — which he indicated could help contain raw material costs, moderate price pressures, and support broader economic activity — depends on an exemption that authorities can alter or withdraw at short notice, a level of unpredictability he characterised as at odds with the extended planning horizons that industry operators require to function effectively.
The industry body expressed hope that both governments would take care to keep any such measures from complicating active trade talks, and that the broader economic relationship between the two countries would rest on a foundation of stability, transparency, and mutual benefit.
Ajay Sahai, who heads the Federation of Indian Export Organisations as Director General, noted that the move is intended to reduce exposure to risk for Indian exporters while building confidence among buyers and sustaining order volumes, with labour-intensive industries — among them textiles, leather, gems and jewellery, and machine building — standing to benefit most; he further observed that the measure could help advance the broader conversation around trade ties between India and the United States.
Sahai noted that the waiver remains open to periodic review, a condition that leaves the outlook for future contracts and investments uncertain — and, as exporters, particularly those operating as MSMEs, have pointed out, stable long-term tariff commitments are what the sector requires to plan ahead.
The statement expressed a desire for the relief measures to lay groundwork for a lasting trade arrangement, noting that India would press ahead with efforts to sharpen its competitive edge and broaden the range of markets receiving its exports.
Legislation expanding penalties against Russia's senior political and military figures, along with state-owned enterprises, received Trump's signature and became law on September 18 after clearing Congress. Under the legislation, tariffs on energy supplies originating from Russia would rise fivefold, while nations identified as substantial purchasers of that energy face a doubling of their own duty rates.
Under the statute, such actions fall outside the permissible scope of executive authority whenever a determination has been made that they run counter to national interests. An executive order put the law's central provisions on hold for the time being.
