US midterm gains may ease India's economic risks, but oil and Russia concerns persist

Democratic gains in the US Congress could strengthen diplomatic efforts over the Iran conflict and support the rupee and foreign investor inflows. However, uncertainty over crude oil prices, potential 100% tariffs linked to Russian oil purchases and US trade policy continue to cloud India's economic outlook, CareEdge Ratings says. The report said Democratic control of both chambers could ease geopolitical tensions, but key decisions rest with President Donald Trump, limiting immediate impact. Crude oil prices fell 8.7% to $94.62 per barrel after the results, yet risks remain around the Strait of Hormuz and energy supply disruptions. India faces possible tariffs up to 100% on Russian crude purchases, with a waiver lacking an expiry date and subject to withdrawal. US H-1B visa rules and strategic ties are expected to remain unchanged, though Congress may scrutinize India's Russian oil and defence deals.