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New Delhi: There may be huge economic pressure from America on India to buy oil from Russia. According to reports, US President Donald Trump has supported a proposed bill under which tariffs of up to 500 percent can be imposed on countries that continue trading with Russia’s energy sector. If this law is implemented, it may have the biggest impact on countries like India and China.

What is the proposed bill?

This proposal is known as ‘Sanctioning Russia Act’. It was introduced by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. The aim of this bill is to reduce Russia’s earnings from energy business.

If the law is passed, the US President may get the power to impose tariffs of up to 500 percent on imports from countries that continue to buy oil and gas from Russia.

Why is India the target?

American lawmakers believe that India and China are among Russia’s biggest energy buyers. He argues that continuous buying of oil by these countries gives economic strength to Russia. Therefore, an attempt can be made to reduce Russia’s income by creating economic pressure on these countries.

What will be the impact on Indian economy?

Economists say that if up to 500 percent tariff is implemented, it could have an impact on India’s economy. It is estimated that due to this the country’s GDP may decline by about 0.5 percent.

Its impact can be seen first on export-oriented sectors like pharmaceutical industry, textile and IT services. However, India clearly says that it buys oil keeping in mind its energy needs and this decision is completely based on economic interests.

Differences in American politics too

There is no unanimous opinion regarding this bill even in America. Some lawmakers want President Trump to publicly support this proposal, while some Republican Party leaders have opposed it. He says that imposing heavy tariffs on countries like India and China can affect global trade and increase economic instability.