Tariffs And Ties: How Deep Is India's Dependence On Russia?
"I don't care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World," Trump wrote in a post on his Truth Social platform.
India US Trade
The US has been India's largest trading partner for the fourth consecutive year in 2024-25 with bilateral trade valued at $131.84 billion. In the last fiscal, India's exports to the U.S. rose by 11.6 per cent to $86.51 billion as against $77.52 billion in 2023-24. The imports were up by 7.44 per cent in 2024-25 to $45.33 billion against $42.2 billion in 2023-24.
The trade surplus with the US has touched $41.18 billion in the last fiscal from $35.32 billion in 2023-24. New Delhi and Washington have also built a strategic partnership on technology and defence, among other areas, anchored largely by their shared desire to contain the growth of China.
Since April, India and US have been preparing to negotiate an agreement. Earlier this week, US Trade Representative Jamieson Greer said "We continue to speak with our Indian counterparts. We've always had very constructive discussions with them", however, he added that Delhi's trade policy focusses on "protecting their domestic market".
Trump has been trying to secure deals that open other markets to the US, but India has fiercely protected its dairy and farm sector to protect the interests of its small farmers. India is still hoping to strike a deal with Washington soon, with Commerce minister Piyush Goyal saying that New Delhi remains "optimistic".
India Russia Trade
India has access to discounted Russian crude oil and the exports have sharply risen from 2 per cent before the Ukraine conflict to 40 per cent by June 2024. By this year, Moscow was supplying more oil to India than all West Asian sources combined. Apart from oil, India also maintains cooperation in the nuclear energy sector with Russia.
With respect to India's military capabilities, Russia plays a big role. It is the principal arms supplier for India, providing fighter jets, submarines, missiles and tanks.
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