The trade deal between India and America has now been finalized. US President Donald Trump has reduced the 50 percent tariff imposed on India to 18 percent. Apart from this, he claimed that India will now buy oil from Venezuela. SBI has released a report on this, in which it has been told how India will get double benefit from this deal and there will be a saving of Rs 27 thousand crores.
The latest report of SBI Research shows that if India shifts the direction of buying oil from Russia to Venezuela, then the country can get direct savings of about Rs 27,081 crore i.e. about 3 billion dollars every year. According to SBI Research, Venezuelan heavy crude oil Merey 16 can be bought about 10 to 12 dollars per barrel cheaper than the international market price. Till now, cheap oil from Russia was meeting India’s needs, but now if it decreases, then Venezuela can become a strong option. This will keep the country’s oil cost under control and there will not be much pressure on the prices of petrol and diesel.
Dependence on Russia will reduce
After the Ukraine war, due to Western sanctions, India bought large quantities of discounted oil from Russia. The effect of this was that in FY25, Russia’s share in India’s total crude oil imports increased to more than 30 percent. Now the situation is changing. India today has options to buy oil from about 40 countries, which include Venezuela, Saudi Arabia, Iraq, UAE, America and West African countries. With this, India’s supply will be more secure and balanced.
Exporters will get a boost
Indian exporters will get the biggest benefit from the India-US trade deal. America has reduced the tariff imposed on Indian products to 18 percent, which earlier had reached 50 percent in some cases. SBI Research believes that this cut can prove to be a game changer for India. This will give India a direct advantage in terms of tariffs on Vietnam and many countries in South-East Asia.
Which sector will benefit more?
Sectors like gems and jewellery, textile, leather, chemicals, seafood and engineering goods are expected to benefit the most from this deal. America already accounts for about 20 percent of India’s total exports. Due to reduction in tariff, orders may increase and companies’ earnings may strengthen.
There will be no impact on inflation
The SBI report clearly says that there is no danger of domestic inflation increasing due to this entire change. Energy costs will remain under control due to availability of cheap oil alternatives. That means exports will increase, dollars will come and there will be no additional burden on the pockets of common people. In the deal, India has taken special care regarding sensitive areas like agriculture and dairy. India is the largest milk producing country in the world, hence the security of this sector is very important from the point of view of employment, rural income and food security.
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