Putin and Modi held talks and announce expansion of Russia-India trade
ties amid US pressure
[December 05, 2025] By
RAJESH ROY and AIJAZ HUSSAIN
NEW DELHI (AP) — Russian President Vladimir Putin held talks with Indian
Prime Minister Narendra Modi on Friday at an annual summit and agreed to
diversify mutual economic ties, as the United States presses India to
revise its decades-old partnership with Russia.
The 23rd Russia-India Summit comes at a pivotal moment as the U.S.
pushes for a Ukraine peace deal while seeking global cooperation. It
will test New Delhi’s efforts to balance relations with Moscow and
Washington as the nearly four-year war in Ukraine grinds on.
Putin was received by Modi at an airport in New Delhi on Thursday. The
Indian leader gave Putin a bear hug and a tight handshake with the gusto
of an old friend.
Leaders outline Russia-India expanding ties
After the talks, Putin and Modi announced that India and Russia have
finalized an economic cooperation program until 2030, which will help
diversify mutual businesses to boost annual trade to $100 billion by
2030. They also emphasized strong energy ties.
Bilateral trade between the two countries stood at $68.7 billion in the
last fiscal year ended March. The trade is heavily skewed in favor of
Russia with deep deficits for India, which it is looking to bridge by
pushing exports.
“To achieve this significant goal, a program for the development of
Russian-Indian economic cooperation until 2030 has been agreed upon,”
Putin said. He said work is underway on an agreement for India to
establish a free trade zone with the Eurasian Economic Union, a
Moscow-dominated economic grouping of several ex-Soviet nations, adding
that it could help increase trade.
“Russia is a reliable supplier of energy resources and everything
necessary for the development of India’s energy sector,” Putin said. “We
are ready to continue ensuring the uninterrupted supply of fuel for the
rapidly growing Indian economy.”
Before the summit talks, the Russian leader said the two countries “have
a very trusting relationship when it comes to military-technical
cooperation.”
Modi, for his part, said after the talks that the two countries will
work toward early conclusion of a free trade agreement with the Eurasian
Economic Union. He also announced that India will soon start issuing
free electronic visas for Russian tourists and groups visiting the
country.
The Indian leader said energy security has long anchored India-Russia
ties, with civil nuclear cooperation spanning decades. He added that
such cooperation will continue, alongside collaboration in clean energy,
shipbuilding, fertilizers and labor mobility.
US seeks to push India away from Russia
While India has historically maintained deep ties with Russia, critics
say Putin’s visit could strain relations with the European Union and the
United States and might jeopardize negotiations for major trade
agreements with both that are seen as critical for India’s exports.
U.S. President Donald Trump raised tariffs on Indian goods to 50% in
August, citing New Delhi's discounted Russian oil. India has been the
second biggest importer of Russian crude after China.
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Russian President Vladimir Putin, left, and Indian Prime Minister
Narendra Modi pose for a photo prior to their talks in New Delhi,
India, Friday, Dec. 5, 2025. (Mikhail Tereshchenko, Sputnik, Kremlin
Pool Photo via AP)
 The U.S. says purchases of Russian
oil help finance Moscow’s war machine. In October, the U.S.
sanctioned two of Moscow’s biggest oil producers to force countries
like India to cut down on imports. Indian officials have said New
Delhi has always abided by international sanctions and would do so
in the case of Russia oil purchases as well.
India and the U.S. set a target for the first
tranche of a trade deal by the fall, but the deal hasn’t come
through yet amid strains in relations.
India is also in the final stages of talks on a trade agreement with
the EU, which sees Russia's war in Ukraine as a major threat.
Putin’s India visit, “given the timing and geopolitical context,
underscores New Delhi’s strategic tightrope walk between the West
and the rest, chiefly Russia,” said Praveen Donthi, a senior analyst
with the International Crisis Group.
Donthi said India’s tilt toward Russia dates back to the Cold War
and persists despite its official nonaligned position. “The
significant change now is its desire to be a strategic partner with
the U.S. at the same time, which will be a diplomatic challenge,” he
added.
Defense and trade expansion on cards
Indian officials earlier said that Modi in the meeting with Putin
would push for faster delivery of two further Russian S-400
surface-to-air missile systems. It has already received three under
a 2018 deal worth about $5.4 billion. The delay has been tied to
supply chain disruptions linked to the war in Ukraine.
The two sides signed a pact in February to improve military
cooperation, exercises, port calls, disaster relief assistance and
logistics support. Moscow’s State Duma ratified the same ahead of
Putin’s India visit.
India is also expecting to upgrade its Russian-made Su-30MKI fighter
jets and accelerate deliveries of critical military hardware.
India is keen to increase exports of pharmaceuticals, agriculture
and textiles to Russia and is seeking the removal of non-tariff
barriers. New Delhi is also seeking long-term supplies of
fertilizers from Moscow.
Another key area where the two countries hope to finalize an
agreement is the safety and regulation of migration of Indian
skilled workers to Russia.
Putin last visited India in 2021. Modi was in Moscow last year, and
the two leaders briefly met in September in China during a Shanghai
Cooperation Organization summit.
___
Hussain reported from Srinagar, India.
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