Modi challenges the US, boosts trade with Russia
In his first visit to New Delhi since 2021, Vladimir Putin announced an economic cooperation plan with India between now and 2030. India has been trying to balance relations between the United States, which has imposed heavy tariffs, and Russia, which remains the country's leading arms supplier. No new defence contracts were signed, but the two sides inked energy, nuclear power, shipbuilding, and labour deals, to reach US$ 100 billion in bilateral trade a year.
New Delhi (AsiaNews) – Russian President Vladimir Putin and Indian Prime Minister Narendra Modi announced today expanded bilateral trade and closer diplomatic relations, ignoring pressure from the United States, which has been trying to split New Delhi off from Moscow with threats, at least in the area of trade.
Putin landed in New Delhi yesterday where he was warmly welcomed by Modi. This is Putin's first visit to India since 2021 and the invasion of Ukraine in 2022, and it comes against a backdrop of a delicate geopolitical realignment.
In recent months, India has moved away from the United States, which has imposed high tariffs on Indian goods after repeatedly demanding that it stop buying Russian oil.
Trump accused India of financing Russia's war in Ukraine and imposed an additional 25 per cent tariff on Indian imports, already hit by 50 per cent duties, an issue Indian negotiators are still working on.
Although several Indian oil companies have reduced their purchases of Russian crude, after the outbreak of the war in Ukraine, a third of India's oil imports still comes from Russia.
Modi has tried to balance pressure from the United States, its largest trading partner, and Russia, which remains India’s main arms supplier alongside the United States, France, and Israel.
India has traditionally sought to maintain a policy of non-alignment and a certain strategic autonomy, partly to avoid favouring closer relations between Russia and China, India's longtime rival.
However, in response to US pressure, India recently reopened diplomatic channels with China. And now Modi does not seem to mind tying his country more closely economically to Russia in response to US tariffs.
During their meeting, Modi and Putin agreed to diversify bilateral trade ties beyond oil and defence. In fact, Russia plans to import more Indian goods to boost trade to US$ 100 billion by 2030.
Modi reiterated the importance of the partnership between the two countries. Speaking at a press conference, he said, “we have agreed on an economic cooperation programme for the period up to 2030. This will make our trade and investment more diversified, balanced, and sustainable”:
Ignoring US threats, Putin said that Russia would continue to ensure "uninterrupted fuel supplies" to India.
“The Leaders underlined that India-Russia ties have remained resilient in the backdrop of the prevailing complex, challenging and uncertain geopolitical situation”, reads a joint statement.
Yesterday, in an interview with India Today, Putin reiterated that trade in energy is “running smoothly”, adding that plans to build India's largest nuclear power plant, in Kudankulam, in the southern state of Tamil Nadu, continue.
"Two of six units are already connected to the grid and four are under construction," Putin said. "Once fully operational, it will make a major contribution to India’s clean and affordable energy needs."
India has set a goal of producing 100 GW of nuclear power by 2070, more than tenfold over its current capacity.
No major defence deals were announced (Modi reiterated that India "stood on the side of peace” since the start of the Ukraine war), but agreements on shipbuilding and minerals were signed, underscoring the importance of trade.
The joint statement clearly demonstrates that the two countries want to increase bilateral trade, which is currently running at more than US$ 60 billion annually.
It is also important to remember that India's arms imports from Russia went from 72 per cent in the 2010–2014 period to 36 per cent in the 2020–2024 period, another sign of India's desire to maintain a certain strategic independence and avoid being militarily tied to Russia, at least for the time being.
New Delhi and Moscow have also agreed to facilitate the immigration of Indians to Russia for work, along with the establishment of new Indian consulates in Russia (while the United States is complicating work visa procedures for hundreds of thousands of Indians employed primarily in the tech industries).
The two countries also plan to create a joint venture for fertiliser production in Russia, and to strengthen cooperation in agriculture, healthcare, and maritime transportation.
For his part, Putin announced that the Russia Today network would open offices in India to broadcast “objective information” on what is happening in the country.
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