US President Donald Trump's punitive 50 per cent tariff on imports from India could pose a serious challenge to New Delhi's self-reliance ambitions under the Atmanirbhar Bharat mission.

In an executive order, Trump says "I find that the Government of India is currently directly or indirectly importing Russian Federation oil" and due to those purchases, imports of Indian goods into the United States "shall be subject to an additional ... rate of duty of 25%."

India faces a potential $9-12 billion increase in crude oil import expenses if it halts Russian oil purchases due to potential tariffs. While India has diversified its oil sources, Russian oil accounts for a significant portion of its imports.