Putin shows support to Modi amid US tariffs on India

NEW DELHI Russian President Vladimir Putin landed in New Delhi on Thursday for a two-day state visit, during which both India and Russia emphasized their intention to strengthen trade ties and diversify the range of goods exchanged between the nations.

This marks Putins first trip to India in four years, aimed at boosting the sale of Russian oil, fighter jets, and missile systems, while expanding commercial collaboration beyond energy and defense sectors, despite U.S. pressure on India to reduce engagement with Moscow amid the ongoing conflict in Ukraine.

Indian Prime Minister Narendra Modi welcomed Putin at the airport, highlighting the cordial relations between the two countries and their leaders. The two embraced on the red carpet before proceeding together in the same vehicle. Modi is hosting a private dinner for Putin on Thursday, followed by summit talks on Friday. The visit includes senior Russian ministers and a large business delegation.

Both nations are targeting $100 billion in bilateral trade by 2030. Trade between the two countries surged from around $13 billion in 2021 to nearly $69 billion in 202425, largely driven by Indian imports of Russian energy. However, trade fell to $28.25 billion during AprilAugust 2025 due to decreased crude oil imports following U.S. sanctions and punitive tariffs imposed under President Donald Trump.

India is actively seeking new markets for its goods, which have been affected by a 50% U.S. tariff, partly linked to Indias purchases of Russian oil. Russia, for its part, aims to import more Indian products to balance trade, which currently heavily favors energy exports. Deputy Kremlin Chief of Staff Maxim Oreshkin told a New Delhi business conference, We have arrived with a clear goal to purchase Indian goods and services. This is a strategic choice to deepen relations, not a temporary measure.

Indian Trade Minister Piyush Goyal highlighted the potential for expanding exports to Russia, including automobiles, electronics, industrial machinery, textiles, and food products. Russia has significant demand for industrial and consumer goods, offering multiple opportunities for Indian businesses, he stated. Goyal emphasized the need for greater diversity in trade between the countries.

Russian Agriculture Minister Oksana Lut indicated Russias readiness to increase imports of shrimp, rice, and tropical fruits from India, and noted interest in Indian food-processing equipment. India, as the worlds largest shrimp exporter, has seen its shipments decline to the U.S. due to tariffs, making Russia an important alternative market.

Analysis: Strengthening Indo-Russian Trade Relations Amid Global Pressures

Russian President Vladimir Putin's state visit to New Delhi highlights the evolving economic dynamics between India and Russia. With trade between the two countries surging in recent years, the focus now shifts beyond traditional energy and defense sectors, as both nations aim to diversify their economic collaboration. Despite geopolitical challenges, including U.S. sanctions and the ongoing conflict in Ukraine, the visit signals a commitment to reinforcing bilateral ties.

Trade between India and Russia has seen significant growth, from around $13 billion in 2021 to nearly $69 billion in 2024-2025. However, recent trade statistics show a sharp decline, dropping to $28.25 billion between April and August 2025. This reduction is primarily attributed to the decreased import of Russian crude oil, a consequence of U.S. sanctions. Both countries are working to offset these challenges by expanding trade in other sectors, such as automobiles, textiles, and food products, which are now on the radar for growth.

India is looking to open up new markets for its goods, especially in light of the tariffs imposed by the U.S. on Indian exports. On the other hand, Russia seeks to balance trade by increasing its imports of Indian products, focusing on consumer goods, industrial machinery, and food products, including shrimp, rice, and tropical fruits. This shift is expected to provide Indian businesses with new opportunities, particularly as Russia's demand for these goods rises. The visit underscores the strategic intent to strengthen these ties in a sustainable manner, extending far beyond short-term measures.

Ultimately, the long-term goal remains clear: both nations aim to reach $100 billion in bilateral trade by 2030. If successful, this partnership could not only help mitigate the effects of external pressures but also set the stage for a more diversified and resilient economic relationship between India and Russia.

Sources:

• Putin embraces Modi as India faces US tariffs