The Swadeshi Jagaran Manch (SJM), the economic wing of the Rashtriya Swayamsevak Sangh (RSS), has criticised US legislation that could allow President Donald Trump to impose tariffs of up to 100 per cent on countries buying significant quantities of Russian oil.
The SJM has urged the Indian government to remain firm on its decision to purchase Russian crude and called for a boycott of US companies. It also asked the government to “impose a unilateral ban” on US technology and social media firms.
SJM opposes US tariff threat
India was among five target economies named by the sponsors of the US Senate bill, which was approved 86-11 on Friday. The legislation seeks to authorise tariffs on countries making significant purchases of Russian oil, gas and other exports.
SJM national co-convener Ashwani Mahajan said India has the right to decide where it sources its energy.
“India has time and again made it clear that our sovereign right to purchase energy from legitimate international markets cannot be dictated by any third country…” he said.
Mahajan said India's decision to buy Russian crude was based on energy security, availability, pricing, supply diversification and consumer interests.
“However, those objectives should not be converted into unilateral economic coercion against sovereign countries such as India; and tariffs cannot become an instrument of geopolitical coercion,” he said.
The SJM said the proposed legislation has yet to complete the full process and tariffs would not automatically come into effect, but argued that it posed a threat to free and fair international trade.
Calls for action against US firms
The organisation also urged the government to take a tougher position against American businesses operating in India.
SJM sought the withdrawal of the notification allowing foreign direct investment in e-commerce entities such as Amazon and Flipkart-Walmart. It also demanded that Visa and Mastercard be prevented from regaining a foothold in the Indian market.
The organisation further called for withholding a Lok Sabha-passed bill allowing banks and other electronic service providers to impose Merchant Discount Rate.
‘Trade negotiations cannot be conducted on gunpoint’
The SJM said India's energy policy should not be influenced by external pressure, particularly while New Delhi and Washington are negotiating a bilateral trade agreement.
“India’s energy policy must therefore be determined by India’s national interest, and not by external political pressure,” Mahajan said.
“The US India trade negotiations cannot be conducted on gunpoint…The latest US legislation assumes particular significance because India and the United States are simultaneously engaged in negotiations on a bilateral trade agreement,” he said.