India-Russia Trade
National News: US President Donald Trump has made a big announcement of imposing a 25% tariff on India. Trump is angry about the growing oil and defense trade between India and Russia. He believes that countries like India, which are buying oil and military equipment from Russia, are indirectly helping to prolong the Ukraine war.
Trump made it clear on his social media platform, 'Truth Social,' that India will now have to pay a 25% additional tariff to the US in sectors such as pharmaceuticals, textiles, and IT services. Apart from this, a warning of 'additional penalty' has also been given on ongoing oil and defense deals with Russia.
India’s defense ties with Russia began in the 1960s and remain strong today. Nearly 49% of India’s arms imports (2019–2023) came from Russia, worth billions annually. Big-ticket deals include S-400 missile systems, Sukhoi-30 fighters, MiG jets, T-90 tanks, and naval frigates. The BrahMos missile project symbolizes deep tech collaboration. Total bilateral trade could touch $68.7 billion in 2024–25, cementing Russia as India’s largest arms supplier.
S-400 systems worth $5.43 billion have begun delivery since 2021. The Indian Air Force operates 260+ Sukhoi-30 MKIs alongside MiG variants. The Army fields 1,000+ T-90 tanks, while the Navy utilizes Kilo-class submarines and Talwar-class frigates. AK-203 rifles (7.5 lakh units) are co-produced in India. These deals offer affordable, tech-transfer advantages, making Russia indispensable to India’s military modernization.
Following the Russia-Ukraine war, the US imposed strict sanctions under CAATSA. Trump targets nations buying Russian oil or weapons, calling it support for Russia’s war machine. India, importing 43.2% of its oil from Russia, faces a 25% tariff plus penalties from August 1. This move jeopardizes India’s exports to the US ($83 billion), including IT, pharma, and textiles, triggering inflation and trade uncertainty.
India is diversifying oil purchases from the US, Africa, and Latin America, raising imports from America to 4.39 lakh barrels daily in June 2025. Defense diversification includes Rafale jets (France), Predator drones (US), and Israeli tech. Diplomatically, S. Jaishankar is engaging US lawmakers to avoid punitive measures. Balancing Russian ties with Western alliances remains India’s toughest foreign policy challenge today.
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