Informist, Friday, Aug. 8, 2025

--PM Modi: Reaffirmed commitment to deepen strategic partnership with Russia
--PM Modi: Looking forward to hosting Russia's Putin in India later this yr
--PM Modi:Had very good, detailed chat with Russia's Putin on deepening ties

NEW DELHI – Adding fuel to the unravelling relationship between India and the US over New Delhi's economic ties with Moscow, Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday reaffirmed their commitment to further deepen the "special and privileged strategic partnership". In a "very good" and "detailed" telephonic conversation, the two global leaders also reviewed the progress on the bilateral agenda, Modi wrote in a post on X.

Under the India-Russia strategic partnership, the two countries have a bilateral relationship including political, security, trade and economy, defence, science and technology and culture. During Putin's visit to India in December 2010, the strategic partnership was elevated to the level of a "special and privileged strategic partnership".

"I look forward to hosting President Putin in India later this year," Modi wrote in the post. "I thanked him for sharing the latest developments on Ukraine," Modi added.

Both leaders' telephonic conversations come at a time when India is set to face a 50% tariff on Indian goods in the US for New Delhi's energy procurement from Russia. Over the last two weeks, US President Donald Trump has made scathing remarks about India and Russia, including saying he does not care "what India does with Russia. They can take their dead economies down together, for all I care."

Effective Thursday, Indian goods shipped to the US face a 25% tariff, which is set to double to 50% from Aug. 27, as a penalty for trading with Russia. "I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," Trump said in a White House executive order on Wednesday.

Trump's 25% duty poses a significant risk to Indian exports as the US is India's top export destination with a share of nearly 20% in total outbound shipments in value terms.

India exported goods worth $86.51 billion to the US in 2024-25 (Apr-Mar) and had a trade surplus of $40.82 billion, according to commerce ministry data. According to experts, the 25% tariff could itself bring India's total exports to a four-year low of less than $400 billion in FY26 and pose a downside risk of at least 20 basis points to economic growth. India's merchandise exports were $437 billion in FY25.

India's problems stem not just from the tariffs, but also from New Delhi being penalised for procuring oil from Russia, with whom the country has maintained close economic ties for several decades now. While India has traditionally relied on Moscow for military equipment, New Delhi has become one of the biggest buyers of the country's crude oil since Russia invaded Ukraine in February 2022.

India has been buying crude oil from Moscow at discounted prices amid sanctions by Western countries on Russia. The Group of Seven nations had initially imposed a $60-a-barrel price cap on Russian crude. Later, it imposed more sanctions to try to curb Moscow's crude oil sales. India has bought Russian crude oil at up to $30-a-barrel cheaper, though discounts have varied sharply over the past three years and have been around $4 a barrel in recent times. The International Monetary Fund in February said India saved around $7 billion per year by importing crude oil from Russia at discounted prices. End

US$1 = INR 87.66

Reported by Priyasmita Dutta

Edited by Saji George Titus

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