Politics

India and Russia to boost strategic ties as trade pressure from US grows

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India and Russia are using a closely watched meeting in New Delhi to reinforce their strategic and economic partnership at a time when pressure from the US is increasing.

Russian President Vladimir Putin is visiting India for the first time since Russia’s full-scale invasion of Ukraine, placing the visit under international scrutiny.

The focus is on practical cooperation rather than symbolic gestures. For New Delhi, the timing matters.

Higher US tariffs on Indian goods took effect on 1 August under President Donald Trump, prompting India to look for stable markets and deeper ties with long-term partners.

The meeting reflects India’s effort to balance old relationships while navigating shifting global tensions.

Trade expansion plans

The two-day visit places trade and mobility at the centre of the agenda.

India and Russia plan to finalise a mobility agreement that would allow Indian professionals to relocate to Russia for work.

It marks the first time both nations are creating such a pathway, signalling an expansion of economic cooperation beyond defence.

New Delhi is also working to stabilise its export flows after Trump raised tariffs to 50%.

Shipments of Indian marine products and agricultural goods to Russia are expected to be part of the agreements, offering relief to sectors hit by the tariff change.

Economic planners from both countries are also discussing energy and defence ties.

One key item is the potential lease of a submarine valued at about $2 billion. The plan reinforces a shift in the defence relationship.

Instead of only buying weapons, India and Russia have moved towards co-developing and manufacturing military systems.

Missiles and guns are now designed and produced jointly, supporting both supply chain resilience and local manufacturing.

Tensions with Washington

The trade discussions are unfolding against the backdrop of pressure from Washington.

The US doubled tariffs on Indian goods to 50% to punish New Delhi for continuing to buy Russian oil.

Washington has also been urging India to increase purchases of American weapons.

Despite the tension, India has kept communication channels open.

A negotiating team from Washington is expected in New Delhi next week to continue trade talks.

India’s share of Russian imports has fallen to less than 2%, but both sides plan to lift overall trade to $100 billion by the end of the decade.

For New Delhi, keeping long-standing partnerships active is part of a broader strategy to manage unstable global markets.

The meeting with Putin signals that India wants to maintain those ties even as it faces criticism from the US and the European Union.

Strategic cooperation grows

Beyond trade and defence, the talks highlight a longer-term plan to diversify partnerships. India is exploring new markets to offset the impact of US tariffs.

Russia, facing constraints in Western markets, is looking for steady trade routes and labour mobility options.

The new mobility agreement, broader export routes and joint defence production collectively signal a recalibration of the relationship to match current geopolitical needs.

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