We're heading towards 'Samudra Manthan': PM Modi says India working on oil, gas exploration in 'mission mode' amid US tariff row

In his Independence Day address, Prime Minister Narendra Modi on Friday said that India is headed towards 'Samudra Manthan' and will intensify its efforts in oil and gas exploration. He said that India is about to launch the National Deep Water Exploration Mission soon. 

"We are now heading towards 'Samudra Manthan'. Taking this forward, we want to work in Mission Mode to look for the oil and gas reserves in the sea. So, India is about to launch National Deep Water Exploration Mission," Modi said in his address on India's 79th Independence Day. 

Modi's statement comes at a time when India-US ties are tense due to US President Donald Trump's announcement of additional tariffs on India.

Last week, Trump announced a 25 per cent increase in tariffs on imports from India, bringing the total duty to 50 per cent. This decision comes as a consequence of India's continued importation of Russian oil, despite international tensions following the Ukraine conflict.

The new tariffs are expected to impact $40 billion worth of non-exempt Indian exports to the US.

Prior to February 2022, Russian crude oil represented less than 1% of India’s total oil imports. However, the dynamics shifted after the Ukraine invasion, with Western nations distancing themselves from Russian energy.

By seizing the opportunity of discounted Russian crude, India increased its dependence on it for domestic energy requirements. Consequently, Russian oil now accounts for 30% of India's oil imports, a marked increase from previous levels.

These developments have sparked discussions within India about potentially reducing its oil imports from Russia to mitigate the effects of the US tariffs on its economy.

Western nations' boycott of Russian energy created a surplus, lowering its market price, which India capitalised on to meet domestic energy demand.

The significant increase in India's reliance on Russian oil is seen as a strategic economic move, despite potential geopolitical repercussions. Industry analysts note that the increased tariffs could influence India's oil import strategies and affect its broader economic ties with the US.

India’s shift towards Russian oil highlights the complex interplay between economic needs and international diplomatic pressures.