Modi urges ‘buy local' as India defies US over Russian oil
'The global economy is going through many concerns, there is an atmosphere of instability,' Modi said at a rally in the northern state of Uttar Pradesh on Saturday.
'Now, whatever we buy, there should be only one measure: we will buy things that are made with the sweat of an Indian,' he added, stressing the importance of protecting India's economic interests amid unstable global conditions.
The remarks came just days after the Trump administration imposed 25% tariffs on some Indian exports to the United States. The White House has also threatened further action if India continues to buy Russian oil.
Sources familiar with the matter told Bloomberg that Modi's government has not instructed Indian oil refineries to stop purchasing Russian oil, and no decision has been made to halt the purchases. Both state-run and private refineries are permitted to buy from preferred sources, with the decision to purchase crude oil remaining a commercial one.
India a key Trump target
India has become one of Trump's main targets in his effort to pressure Russian President Vladimir Putin to end the war in Ukraine. Last week, the US president criticised India for joining the BRICS group of developing nations and maintaining close ties with Russia, saying: 'Together they can bring down their floundering economies.'
The rebuke marked a significant shift in the US tone. For years, Washington had largely overlooked India's historically close ties with Russia as it sought to court New Delhi as a counterweight to China in Asia. Trump now appears ready to reverse that strategy to gain leverage against Putin.
A senior adviser to Donald Trump, Stephen Miller, accused India of effectively financing the Russian war in Ukraine by purchasing oil from Moscow. Miller, Trump's deputy chief of staff, also accused India of imposing 'huge' tariffs on American goods and 'cheating' the US immigration system, in addition to buying nearly as much Russian oil as China.
'President Trump wants a strong relationship, and he has always had a strong relationship with India and its prime minister. But we need to be realistic about dealing with the financing of this war,' Miller said in press remarks on Sunday.
'So, for President Trump, all options are on the table to deal diplomatically, financially and politically with the ongoing war in Ukraine, so that we can achieve peace,' Miller added.
Trump told reporters last week he had 'heard' that India would stop buying oil from Russia, calling it 'a good step'.
Bloomberg reported last week that Indian refineries had been asked to devise plans to procure non-Russian crude, thoughone source said the instruction was for 'scenario planning in case the crude is unavailable'. The New York Times also reported on Saturday that India would continue to buy Russian crude despite Trump's threat of sanctions.
US and European criticism
Indian refineries have faced criticism from the European Union and the United States for supporting Moscow through oil purchases during the Ukraine war. India has become the world's largest buyer of Russia's seaborne crude oil exports, taking advantage of discounted barrels and increasing its purchases from almost zero to about a third of its imports.
While China is Russia's main economic and diplomatic backer, Trump's leverage over the world's second-largest economy is limited by Beijing's control over rare earth metals needed by the US for high-tech goods. The US and China have held talks in recent months aimed at stabilising the relationship after both raised tariffs on each other's goods to over 100% earlier this year.
India has defended its relationship with Russia, one of its largest arms suppliers since the Cold War. Foreign ministry spokesperson Randhir Jaiswal said on Friday that the two countries have an 'established and stable partnership'.
'Our bilateral relations with various countries are stand-alone and should not be viewed from the perspective of a third country,' Jaiswal said. When asked about relations with the US, he added that he was 'confident that this relationship will continue to evolve'.
An official in New Delhi said India expects US trade negotiators to visit the country before the end of this month to continue talks on a bilateral agreement. The official stressed that India would hold its position and not grant the US access to its dairy and agriculture sectors, citing political and religious sensitivities.
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