India is refusing to yield to Donald Trump’s economic coercion, as it deepens strategic and defence collaboration with Russia amid sharp tariff reprisals. At the Shanghai Cooperation Organisation summit in Tianjin, Prime Minister Narendra Modi and Russian President Vladimir Putin shared a graceful yet pointed moment of camaraderie. Welcoming PM Modi into his armoured limousine, Putin referred to him as “dear friend,” and the two leaders held hands in full view of the cameras as they approached Chinese President Xi Jinping.
This exchange spoke volumes. It was a diplomatic gesture signalling that despite Trump’s escalating trade tantrums, India stands firm in its strategic autonomy. It was a demonstration of unity among rising powers, showing that India will chart its own course rather than yield to coercive economic pressure. Modi later shared a photo of the limo ride on social media, calling their conversation “insightful,” reinforcing the message that India and Russia remain steadfast partners even in difficult times.
India defies Trump’s tariff tantrums
The United States, under Trump’s leadership, has escalated tariffs on Indian goods to up to 50 percent, including an additional 25 percent penalty aiming to deter India from buying Russian oil. Despite the threat of financial punishment, India is refusing to back down. Indian refiners announced plans to resume increased purchases of discounted Russian crude, drawn in by oil offered at far greater discounts than before. Prime Minister Modi, far from retreating, reaffirmed India’s independence and diplomatic resolve. He emphasised India’s ability to pursue its own national interests even under mounting U.S. pressure -- a bold posture of defiance and determination.
Discounts fuel Russia-India oil bargains
Far from bowing down to the tariff pressure, India and Moscow are believed to have reached an understanding, following which Moscow has significantly deepened discounts on its flagship Urals crude, offering it at three to four dollars below Brent per barrel for September and October shipment, and even wider than the earlier July level of just one dollar below Brent.
This aggressive pricing is a strategic move to secure its largest client even in the face of Western sanctions. Indian refiners quickly seized the opportunity: spot discounts for Urals crude in October climbed to roughly 2.7 dollars per barrel below Brent, up sharply from the 1-1.5 dollars range seen in late July. State refiners such as Indian Oil Corp, Bharat Petroleum and MRPL have signalled strong interest in loading cargoes in September, capitalizing on the deep discounts and jostling to secure energy at favourable rates.
A surge in Russia oil deliveries
The widening discounts have translated into a projected 10 to 20 percent increase in Russian oil exports to India, corresponding to an extra 150,000 to 300,000 barrels per day by September compared with August, according to Reuters.
This uptick underscores that India is prioritizing energy security and price advantage over political compliance with US demands. Indian refiners remain undeterred by tariffs, asserting that the deals are pragmatic and not exploitative. Oil Minister Hardeep Puri defended the policy, insisting India’s buying has helped stabilise global markets rather than “launder oil money,” and indicating that India will continue to make calculated decisions in its national interest.
Russia and India in talks to expand S-400 deliveries
Beyond oil, the strategic axis between Russia and India is tightening further. Russia’s Federal Service for Military-Technical Cooperation, led by Dmitry Shugayev, confirmed that negotiations are underway for additional deliveries of the advanced S-400 Triumf surface-to-air missile system. India had already signed a $5.5 billion agreement with Russia in 2018 for five S-400 batteries, meant to reinforce its defences against evolving threats.
The initial deal has faced delays, with the final two systems now scheduled for delivery in 2026 and 2027. Now, the talks aim to expand India’s missile shield even further. Shugayev explicitly said that “there is potential to expand our cooperation in this area as well,” suggesting a deepening of arms ties despite persistent US sanctions pressure.
India’s defence modernisation continues unhindered
India’s defence relationship with Russia is vast and long-standing. It includes licensed production of T-90 tanks, co-development and manufacturing of Su-30MKI fighter aircraft, acquisition of MiG-29 jets and Kamov helicopters, construction of the aircraft carrier INS Vikramaditya (formerly Admiral Gorshkov), local production of AK-203 assault rifles, and a major role in the BrahMos missile program. In the past five years alone, Russia has supplied India with approximately $13 billion worth of arms, while India’s defence orders with Moscow exceed $10 billion.
Russia accounted for 36 percent of India’s total arms imports between 2020 and 2024, with France and Israel following at 33 and 13 percent respectively. Despite global geopolitical friction and sanctions in response to Russia’s invasion of Ukraine, this full-spectrum strategic cooperation continues unabated.
India asserts multipolarity, pushes back against Western hegemonism
At the SCO summit in Tianjin, President Xi pressed for a new global order prioritising the interests of the global south while rejecting hegemonism and power politics -- an indirect critique of Trump’s America-first, tariff-heavy policies. Modi’s warm embrace of this vision, alongside Putin, conveyed that India is aligning more with strategic autonomy and multipolarity rather than Western dominance. The seamless camaraderie between Modi, Putin, and Xi served as a unified message that US attempts at strong-arm diplomacy are being met with coordinated resistance among emerging global powers. India’s posture reflects a shift toward diversified alliances, hedging against unilateral pressure and affirming its sovereignty in choosing partners.
India once carefully balanced ties with Washington and forums led by China and Russia, avoiding overt displays of warmth. But with Donald Trump’s tariffs on Indian goods now at 50 percent after penalizing New Delhi for buying Russian oil, that calculus has shifted. Prime Minister Narendra Modi openly shared images of his meeting with Vladimir Putin and told him that “1.4 billion Indians are waiting with excitement” to welcome him in December, calling their ties a “Special and Privileged Strategic Partnership” that has endured even in difficult times.
Germany’s Foreign Minister Johann Wadephul on Wednesday underlined how India’s long tradition of non-alignment has shaped its ties with Moscow. “That has left its mark on this country (India) and distinguishes this country from Germany … During the Cold War, we were in confrontation with the then Soviet Union … but we are back in a situation where we’re confronting Russia … and India finds itself in a different situation,” he said.
This helps explain why New Delhi has stood firm on buying Russian oil despite escalating US tariffs and European criticism. India has called the duties “unfair, unjustified, and unreasonable” and stresses that its energy trade complies with international law, since there is no outright ban on Russian oil. Indian officials have also highlighted Western hypocrisy, with External Affairs Minister S Jaishankar noting that while India is penalised for its purchases, the US and EU continue significant trade with Russia themselves.
Economic irony: US tariffs drive India closer to Russia
Trump’s imposition of steep tariffs on Indian imports was intended to punish India for buying Russian oil. Yet the effect has been the opposite. Rather than isolating India, US measures have nudged it closer to Russia, both economically and strategically. Discounted Russian oil helps India stabilise fuel prices at home, critical for its vast population. At the same time, expanded S-400 deliveries enhance India’s deterrence capability, especially in the twilight of Operation Sindoor and rising subcontinental tensions. The US approach has backfired: it has confirmed India’s resolve, encouraged a reset in global alignments, and undermined Washington’s soft power and credibility when wielding economic threats against an increasingly assertive India.
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