Putin, Modi agree to expand, widen India-Russia trade
Reuters :
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi agreed on Friday to expand and diversify trade beyond oil and defence despite Western pressure on New Delhi to scale back its decades-old close ties with Moscow.
India, the world’s top buyer of Russian arms and seaborne oil, has rolled out the red carpet for Putin during his two-day state visit, his first to New Delhi since Russia’s invasion of Ukraine in 2022.
The trip coincides with New Delhi’s talks with the US on a trade deal to cut punitive tariffs imposed by President Donald Trump on its goods over India’s purchases of Russian oil.
Russia has said it wants to import more Indian goods in an effort to grow trade to $100 billion by 2030. It has so far been skewed in Moscow’s favour due to New Delhi’s energy imports.
TIES HAVE ‘STOOD TEST OF TIME’, SAYS MODI
Describing India’s enduring partnership with Russia as “a guiding star”, Modi said: “Based on mutual respect and deep trust, these relations have always stood the test of time.”
“…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,” he told reporters, with Putin by his side.
Modi, who warmly embraced Putin on the airport tarmac when he arrived on Thursday, also reiterated India’s support for a peaceful resolution to the war in Ukraine.
Putin said Russia would continue to ensure “uninterrupted fuel supplies” to India, signalling a defiant stance in the face of US sanctions, and also flagged a project underway to build India’s largest nuclear power plant at Kudankulam.
A joint statement issued following the summit said: “The leaders emphasised that in the current complex, tense, and uncertain geopolitical situation, Russian-Indian ties remain resilient to external pressure.”
Putin received a ceremonial welcome on Friday on the forecourt of Rashtrapati Bhavan, the colonial-era presidential palace, with a 21-gun salute as his convoy drove in.
A large business and government delegation has accompanied Putin. Among the deals signed, the two countries agreed to help Indians move to Russia for work, to set up a joint venture fertiliser plant in Russia, and boost cooperation in agriculture, healthcare and shipping.
They also agreed to reshape their defence ties to take account of New Delhi’s push for self-reliance through joint research and development, as well as the production of advanced defence platforms.
This would include joint production in India of spare parts, components, assemblies, and other products for servicing Russian weapons and military equipment.
In an interview with broadcaster India Today aired late on Thursday, Putin challenged US pressure on India not to buy Russian fuel.
“If the US has the right to buy our (nuclear) fuel, why shouldn’t India have the same privilege?” he said, adding that he would discuss the matter with Trump.
Energy trade with India is “running smoothly” despite a minor dip in the first nine months of 2025, he said.
India has said Trump’s tariffs are unjustified and unreasonable, noting continued US trade with Moscow.
The US and European Union still import billions of dollars worth of Russian energy and commodities, ranging from liquefied natural gas to enriched uranium, despite economic sanctions.
Since European countries have sought to cut their reliance on Russian energy over the Ukraine war, India ramped up its purchases of discounted Russian crude, only to reduce them under pressure from US tariffs and sanctions this year.
“India faces a conundrum; by taking steps to strengthen ties with Moscow or Washington, New Delhi risks setting back ties with the other,” Michael Kugelman, senior fellow at Washington’s Atlantic Council think tank, wrote in Foreign Policy magazine.