Russia’s President Vladimir Putin awards India’s Prime Minister Narendra Modi with the Order of St. Andrew the Apostle the First-Referred to as on the Kremlin in Moscow, Russia July 9, 2024.
Evgenia Novozhenina | Reuters
As India reels below punitive U.S. tariffs over its purchases of Russian oil, New Delhi is all set to host President Vladmir Putin for a two-day go to, signaling its dedication to deepen ties with Moscow.
The go to signifies that India desires to “preserve its relations with Russia, particularly at a time when it sees america as unreliable and China as hostile,” mentioned Ian Bremmer, president and founding father of political threat consultancy agency Eurasia Group.
Putin will likely be in India on Dec 4-5 for the twenty third India-Russia annual summit, with specialists saying the 2 international locations will lengthen their strategic and commerce ties.
Whereas this go to was deliberate earlier than U.S.-India ties soured, it signifies that “New Delhi isn’t beholden to the whims of the Trump administration and that it maintains an unbiased overseas coverage,” mentioned Chietigj Bajpaee, senior analysis fellow for South Asia within the Asia-Pacific Programme at Chatham Home.
Kremlin mentioned final week that Putin’s go to was of “nice significance” with the Russian president and Indian Prime Minister Narendra Modi set to debate the “scope of Russia-India particular and privileged strategic partnership in politics, commerce and economic system,” amongst different points.
The 2 leaders are anticipated to concern a joint assertion and may signal a “big selection of bilateral interdepartmental and enterprise agreements” it added.
Increasing commerce would be the main focus of the summit, which might assist India obtain a extra balanced bilateral commerce with Russia, mentioned Aleksei Zakharov, visiting fellow at Indian assume tank Observer Analysis Basis.
Commerce disparity
In fiscal yr ended March 2025, commerce between India and Russia stood at $68.72 billion, closely skewed in favor of Russia, in response to knowledge government-backed India Model Fairness Basis. Indian exports to Russia had been simply $4.88 billion whereas imports stood at $63.84 billion, it mentioned. The international locations goal to broaden bilateral commerce to $100 billion by 2030.
India might ramp up its shipments of equipment, chemical compounds, meals and pharmaceutical merchandise to Russia, whereas Moscow is pitching its technological options for civilian nuclear power, together with constructing small modular reactors in India, mentioned Zakharov.
“New Delhi and Moscow are looking for to compensate for India’s diminished purchases of Russian oil by diversifying their commerce relationship to different areas, together with protection and civil nuclear cooperation,” mentioned Bajpaee of Chatham Home.
The 2 leaders are more likely to focus on India’s buy of Russia’s next-generation Su-57 fighter jets and its superior S-500 missile protection protect, in response to a report by Bloomberg.
Some specialists, nonetheless, have raised doubts over Russia’s means to honor a protection deal.
“India and Russia will speak about weapons, however Russia can barely ship on the S-400 already on order due to chip shortages,” mentioned Bremmer of Eurasia Group, including that “India isn’t within the su-57 fighter.”
Between 2020 and 2024, Russia was the biggest provider of arms to India with 36% share, adopted by France at 33% and Israel at 13%, in response to knowledge from Stockholm Worldwide Peace Analysis Institute.
However Russia’s share has been declining from 55% in 2015–19 and 72% in 2010–14. India is shifting sourcing of arms towards suppliers akin to France, Israel and the U.S., SIPRI famous in its report in March this yr.
Balancing act
India has been below strain from the U.S. to chop again on its imports of Russian oil as Washington claims this permits Moscow to withstanding strain of financial sanctions by the West and proceed its struggle in opposition to Ukraine.
New Delhi incurs a further 25% levy, on prime of 25% tariffs on its exports to the U.S. as a “penalty” for its purchases of Russian power. The 50% U.S. tariffs on Indian items, amongst the very best on any nation, got here into impact on Aug. 27.
The U.S. has accused India of importing Russian oil and reselling it within the open marketplace for a “important revenue,” enabling Moscow to fund its aggression. New Delhi has mentioned that its oil imports are primarily based on the “goal of making certain power safety of 1.4 billion individuals of India.”
In its bid to fix ties with the U.S., New Delhi has ramped up power purchases from Washington with Indian state-owned oil corporations signing a 1-year deal to import round 2.2 million tonnes each year of liquefied petroleum gasoline from the U.S.
The nation has additionally been reducing again on its Russian oil purchases after the U.S. sanctioned Russia’s two largest oil corporations, Rosneft and Lukoil.
Nevertheless, Sumit Ritolia, lead analysis analyst at power intelligence agency Kpler informed CNBC that Russian oil exports to India will drop within the brief time period however will choose up by new intermediatory corporations that may circumvent the sanctions.
A scarcity of U.S.-India commerce deal might imply income lack of $20 billion in commerce surplus for India whereas the associated fee benefit with Russian discounted oil was about $8 billion, mentioned Arpit Chaturvedi, advisor with Teneo’s geopolitical threat advisory staff. “Weighed solely in financial phrases, the commerce with U.S. is rather more essential for India,” he added.
Putin’s go to to India comes at a time when the U.S. has been striving to dealer a peace deal between Ukraine and Russia.
On Tuesday, Putin, U.S. envoy Steve Witkoff and Trump’s son-in-law Jared Kushner met in Moscow for 5 hours to debate the tip of struggle between Russia and Ukraine. Kremlin reportedly mentioned the assembly was constructive however there was no breakthrough.
India will likely be hoping for an eventual peace deal as that can assist scale back scrutiny of the India-Russia relationship, mentioned Bajpaee.
