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International trade

India and Russia Strengthen Ties Amid US Retaliation

Strategic Insights

— 2 min read

Indian Prime Minister Narendra Modi and Russian President Vladimir Putin met on the sidelines of a regional summit in China on Monday, deepening their nations' ties over the purchase of Russian oil. The two leaders held talks after attending the gathering in the port city of Tianjin, where discussions focused on regional stability, bilateral trade, and energy cooperation. The meeting comes as the US has imposed additional tariffs on Indian imports, including discounted Russian oil, in retaliation for India's continued purchases.

Key Takeaways:

  • The meeting between Modi and Putin underscored India's stance that it prizes its old and reliable strategic partners, with sufficient strategic autonomy in its foreign policy to maintain and strengthen its multi-dimensional partnership with Russia.
  • India's imports from Russia have sharply increased in recent years, reaching a record $64 billion in the 2024-25 financial year, with Russia accounting for around 37% of India's total oil imports.
  • Trade between India and Russia has grown significantly, with a record $68.7 billion in the 2024-25 financial year, and the two nations aspire to bolster trade to $100 billion by 2030.
  • The meeting comes amid US retaliation against India's purchase of discounted Russian oil, with US President Donald Trump imposing additional tariffs on Indian imports in response to India's continued purchases of Russian crude.
  • Analysts say Trump's policies are accelerating a process whereby India is working closely with China and Russia to push back against economic unilateralism from the US.
  • Modi's meeting with Putin is seen as a sign of India's commitment to its strategic autonomy and its willingness to engage with multiple partners, including both the US and Russia.

Statistics:

  • India imported $64 billion worth of oil from Russia in the 2024-25 financial year, accounting for around 37% of its total oil imports (AP).
  • Trade between India and Russia reached a record $68.7 billion in the 2024-25 financial year, with imports from Russia reaching $64 billion and exports from India totaling about $5 billion (Indian government data).
  • The two nations aspire to bolster trade to $100 billion by 2030 (AP).
  • Russia is India's third-largest crude oil supplier after the Middle East (AP).
  • India has grown its Russian oil imports significantly since the war between Moscow and Ukraine, with imports now accounting for a significant proportion of India's total oil imports (AP).
  • The US has imposed additional tariffs on Indian imports, including discounted Russian oil, in response to India's continued purchases (AP).

Sources:

  • The Associated Press, [AP]
  • Indian government data, cited in the AP report
  • Harsh Pant, vice president of foreign policy at the Observer Research Foundation, cited in the AP report
  • Sreeram Sundar Chaulia, an international affairs expert at New Delhi's Jindal School of International Affairs, cited in the AP report

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