India has defended its energy policy after the US Congress cleared a bill giving President Donald Trump the power to impose tariffs of up to 100% on major buyers of Russian oil and gas. India’s Ambassador to the US, Vinay Mohan Kwatra, said securing affordable and reliable energy for 1.4 billion Indians is a basic national responsibility.
Graham Sanctioning Russia and Iran Act of 2026 on Wednesday by 262 votes to 159. It gives the US President authority to impose tariffs of up to 100% on major countries that continue buying Russian oil and gas, potentially affecting India and China. The legislation does not automatically impose a 100% tariff on Indian goods. India and the US, meanwhile, announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade on February 7.
The two governments said at the time that the agreement would represent a historic milestone “in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes”. The US House of Representatives approved the Lindsey O. The Senate had approved the legislation last month. The bill now goes to Trump for his signature. Instead, it gives Trump powers to use the tariffs if conditions set out in the law are met. Negotiations on a wider Bilateral Trade Agreement are continuing.
It said the government remained committed to securing energy for the country’s 1.4 billion people through different suppliers and changing market conditions. The headline 100% figure does not mean Indian exports immediately face that level of duty.
The Ministry of External Affairs said India had taken note of the legislation and was monitoring developments. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side,” the Ministry of External Affairs said in its statement. The government also said it was prepared to protect India’s trade and economic interests. “Government will work closely with Indian trade and industry bodies to deal with the implications of these developments,” the MEA statement said.
New Delhi has already discussed the issue with Washington at senior levels. “This issue has been discussed at high levels in recent months with various US interlocutors. The legislation gives Trump the authority to impose tariffs on major buyers of Russian energy, rather than automatically applying the maximum rate once the bill becomes law.
“People First: What Drives India’s Energy Imperative Energy is a vital strategic necessity for 1.4 billion Indians and a foundation of our development….India is the world’s fastest-growing major economy and its third-largest energy consumer. The country imports more than 85% of its crude oil and around half of its natural gas, according to Kwatra. The administration then introduced a temporary 10% global tariff under a different law.
Hours after the House vote, Kwatra set out India’s case in a post on X titled “People First: What Drives India’s Energy Imperative”. He said India’s energy choices were tied to the country’s development and the daily needs of its people. Our energy needs will, and must, grow,” Kwatra said. Kwatra said reliable and affordable energy supplies are needed to run homes, farms, hospitals, schools, factories and transport networks. “Our sourcing reflects a fundamental national responsibility: looking outside our borders to secure adequate, affordable and uninterrupted energy for our people,” he said. Kwatra said an average Indian consumes less than one-third of the global per capita average and about one-tenth of the level in the United States.
Yet the average Indian consumes less than one-third of the global average and one-tenth of average American. He also pointed to India’s dependence on imported fuel. India is the world’s third-largest energy consumer, but energy use per person remains far below the global average. That difference is central to New Delhi’s argument. As incomes, manufacturing, transport and electricity demand grow, India expects its energy consumption to rise as well. That distinction matters for Indian exporters. The next question is how the Trump administration chooses to use the powers and whether India becomes subject to further duties over its Russian oil purchases. The latest legislation comes during a difficult period for India-US trade. In February, the US Supreme Court ruled that the International Emergency Economic Powers Act did not give the President authority to impose the tariffs at issue in that case. A US trade court ruled against those duties in May. The sanctions legislation now heads to Trump for his signature. Even if it becomes law, attention will then turn to whether the President uses its tariff powers against India and how New Delhi responds. Further India-US trade discussions are expected around the G20 Trade Ministers’ meeting in Wisconsin at the end of September. The talks will take place with Russian oil purchases and the threat of new US tariffs hanging over the wider trade negotiations.
Earlier tariff measures imposed by the Trump administration have also faced challenges in American courts.
