India has announced five billion dollars in support to boost the competitiveness of its exports, which have been significantly impacted by high tariffs imposed by the administration of US President Donald Trump in response to India's purchase of Russian oil. Following a meeting held yesterday evening, the Indian government stated that 'support will be provided to the sectors most affected by the escalation of global customs duties'. A committee will be tasked with examining 'structural barriers to exports' and the support system for small and medium-sized enterprises that rely on large workforces and export their products abroad. India is one of the largest importers of Russian oil, which currently accounts for about a third of New Delhi's imports. However, India has reduced its purchases of Russian oil scheduled for delivery in December. The purchase of Russian oil has allowed India to save billions of dollars in import costs, helping to keep domestic fuel prices relatively stable. India's economy (the fifth largest in the world) showed significant growth, reaching 7.8% between April and June 2025, driven by increased government spending and consumer confidence. However, the additional tariffs imposed by Trump have led analysts to predict a slowdown in growth of between 0.6 and 0.8 percentage points in the absence of supportive policies. At the end of last August, Trump imposed 50% tariffs on all Indian goods, aiming to deter New Delhi from purchasing supplies from Moscow, which he believes funds Russia's war in Ukraine.
