India must draw a red line on U.S. unilateral sanctions, Pg6

Key Highlights:

• The Indian economy is suffering due to the U.S.-Israel war against Iran, leading to rising energy bills, supply chain disruptions, and a slump in exports.
• India's ranking among the world's largest economies has slipped from fourth to sixth, according to the International Monetary Fund (IMF), due to the falling rupee.
• The U.S. has imposed numerous sanctions, with India partially or fully complying, including halting Iranian and Venezuelan oil imports since May 2019.
• India complied with U.S. demands to reduce Russian oil imports from November 2025 to February 2026, halving its intake.
• The U.S. waiver extension on India’s use of Chabahar port is set to expire on April 26.

Detailed Insights:

• The "whack-a-mole" nature of U.S. sanctions creates uncertainty and hinders India's efforts to diversify its energy, food, and fertilizer sourcing.
• Yielding to U.S. sanctions has not curbed their appetite, leading to additional demands for compliance, while ignoring sanctions, such as CAATSA, has proven beneficial.
• Compliance with U.S. sanctions has weakened the rules-based international order and the UN's multilateral mandate.
• India can counter U.S. sanctions by building payment mechanisms like the rupee-rial trade system, developing national payment systems, and expanding renewable energy sources.
• The U.S.'s "short-tether" policy in 1966, limiting grain shipments to India, serves as a historical example of using food as leverage.

Key Concepts Involved:

• Unilateral Sanctions: Economic penalties imposed by one country on another.
• Strategic Autonomy: A country's ability to make independent foreign policy decisions.
• International North South Transport Corridor (INSTC): A multi-modal transportation route linking India, Iran, Afghanistan, Russia, and Europe.

INSTC