The US Federal Reserve’s rate hike, while a global relief for its independence, dims the appeal of Indian assets, potentially necessitating an RBI rate increase to prevent capital outflow. Concurrently, a new US tariff threat over India's Russian oil purchases poses a significant challenge. The author urges India to distinguish between fleeting (Trump’s) and enduring US policies, suggesting resistance to "aberrative" trade pressures. Despite these external risks, India's economy demonstrates resilience. The piece emphasizes judicious policy responses, urging India not to concede to temporary trade-distortive paths, hoping the US returns to more beneficial, sustainable policies.