- India's actual savings from Russian crude are about $2.5 billion annually, not $25 billion as claimed
- India is buying Russian oil within the global price-cap framework without violating agreements
- Garg said India has effectively walked away from US trade talks due to high unilateral tariffs
Former Finance Secretary Subhash Garg has hit out at US President Donald Trump's repeated claims that India is "profiteering" massively from discounted Russian oil, calling the charge "political theatre, not economic reality."
Speaking to NDTV, Mr Garg said a new CLSA report has already debunked the "windfall" narrative, showing India's actual savings from Russian crude are closer to $2.5 billion annually, not $25 billion.
"You can put any number, it makes no difference. Trump is using this as a sword to punish India," Mr Garg said.
'Profiteering Claims Just A Tool To Punish India'
According to Mr Garg, the true effective discount India enjoys on Russian barrels is now just $3-4 per barrel, once shipping, insurance, and blending costs are factored in.
"If Trump wants to use it as a political tool, he can pick any figure. The reality is, India is buying Russian oil well within the global price-cap framework. There's no violation of any international agreement," he stressed.
Mr Garg also warned that backing off Russian crude purchases would be counterproductive, "Any reduction in crude costs is worth it for India. Walking away would only embolden the US, not serve India's interest."
US Treasury Secretary Scott Bessent had said that high tariffs on India are "not just over India's purchase of Russian oil" but also due to the protracted nature of the ongoing trade deal talks.
India-US Trade Talks: 'Effectively Walked Away'
On the question of strained US-India trade ties, Mr Garg said New Delhi has already "effectively walked away" from talks, given Trump's unilateral tariffs of up to 50%.
"No one can trade at those tariff levels. But India should never formally close the door - one must always hope sanity prevails at some point."
At the same time, Mr Garg urged India to rethink its own "rigid" negotiating positions - particularly in agriculture and consumer goods, "We've been too inflexible on things like GM oils or dairy. Farmers' interests are not really hurt by these imports. It's about consumer preference - and that should come with a choice, not bans."
India has asserted that it is prepared to stand firm against US pressure, with Prime Minister Narendra Modi vowing he would "never compromise" the interests of the country's farmers.
Modi-Xi Meeting: 'India Must Rethink China Strategy'
Ahead of PM Modi's scheduled meeting with Chinese President Xi Jinping in Tianjin this weekend, Mr Garg said India's long-standing approach of blocking Chinese investment in critical sectors has backfired.
"We can't do without importing semiconductors, solar cells, EV batteries from China. Allowing Chinese investment in India could actually reduce dependence in the long run. Our current policy has hurt us."
'Boycott Calls Are Insane'
On rising calls to boycott US goods in retaliation to Trump's tariffs, Mr Garg was blunt, "It's insane. The US is deeply integrated into Indian consumption and services. A boycott is neither possible nor desirable."
