Lutnick urges India to rethink Russian Oil buying and open markets

US Commerce Secretary Howard Lutnick has said that India must make meaningful concessions—starting with reducing its reliance on Russian crude—to maintain strong economic ties with the United States. He also emphasised that New Delhi should take steps to open its markets more fully to American businesses.“We will sort out India; they have to stop buying Russian oil,” Lutnick told CNBC in an interview.

In an earlier interview, Lutnick had said, “Before the Ukraine-Russia conflict, India bought less than 2% of its oil from Russia. Now they’re buying 40. Because the oil is sanctioned, it’s really cheap. The Russians are desperate for buyers, and the Indians decided to buy it and make a ton of money. But you know what? That is just plain wrong.”

In the same interview, he had said that “They (India) either need to decide which side they want to be on. Support the dollar, support the United States and support your biggest client—the American consumer—or pay a 50% tariff. Let’s see how long that lasts.”
Lutnick also pointed out a strategic approach to manufacturing and workforce development, drawing on the South Korea–Hyundai model.“We want companies with experience to build factories in India, train Americans and then take their people back,” he said.

The goal, he explained, is to ensure knowledge transfer and upskilling of American workers without importing foreign labour indefinitely.

“It’s about building here, training here, and benefiting American jobs and technology.”

Following the US imposition of steep tariffs on Indian exports due to Russian oil purchases, India-US relations have swung between trade tensions and cautious optimism.

Prime Minister Modi and President Trump have publicly expressed goodwill, highlighting efforts to rebuild trust while continuing discussions on trade, energy, and strategic cooperation.