What happens to Indian firms on U.S. blacklist? Premium

India does not recognise unilateral sanctions by the U.S. or any other country, following only those sanctions imposed by the UN. However, as India-U.S. high-tech trade increases, the U.S.’s strictures will have an increasing impact on both Indian companies and the government’s moves. According to the MEA, Indian agencies are already “sensitising” Indian companies on the new measures being implemented by the U.S. that could impact them. The government could also increase measures to sanction-proof those Indian companies doing business with Russia, by building more structural banking mechanisms, and facilitating payments in national currencies, as have been explored for refineries procuring Russian oil, diamond processing units and other sectors where the U.S. and EU sanctions have been the most stringent. Eventually, rejecting any U.S. decision will come at the cost of bilateral ties, and the government will have to evaluate the cost-benefit calculus on whether to accept U.S.’s moves, or to react more strongly to sanctions.

Published - November 10, 2024 03:35 am IST