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India Targets Trade Growth With Russia Amid Western Sanctions Threat
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
India and Russia aim to boost annual trade by nearly 50% over the next five years, setting a target of $100 billion as both countries look to ease tariffs and strengthen ties amid growing frictions with the United States, a senior envoy announced, according to Bloomberg on August 21.
Speaking in Moscow on Auguat 20, Indian External Affairs Minister Subrahmanyam Jaishankar stressed the need to remove trade bottlenecks and reduce non-tariff barriers to achieve the goal. Russia is currently India’s fourth-largest trading partner, while India ranks as Russia’s second-largest.
According to Bloomberg, Jaishankar’s trip to Moscow marks the latest diplomatic outreach among BRICS founding members, all of whom face steep tariffs and trade threats from US President Donald Trump. The minister is in Russia for a three-day annual dialogue expected to prepare the ground for Vladimir Putin’s planned visit to India later this year.
New Delhi has signaled a gradual shift away from Washington under pressure from tariff threats. Prime Minister Narendra Modi this week described Putin as a “friend” following a call with the Russian leader.
According to Bloomberg, US President Donald Trump and his administration have sharply criticized India for continuing to buy Russian oil, arguing that the trade helps Moscow finance its war against Ukraine. Trump has already imposed a 25% tariff on Indian goods and warned he could raise it to 50% on August 27—a level that would severely undermine India’s $85 billion in annual exports to the US.
New Delhi has rejected the criticism, insisting on its right to purchase oil from the cheapest supplier. Indian officials argue that discounted Russian crude is crucial for keeping domestic inflation under control, calling Washington’s tariffs “unreasonable.”
During his visit to Moscow, Indian Foreign Minister Subrahmanyam Jaishankar also emphasized the need for India and Russia to diversify trade, expand joint ventures between their companies, and hold regular consultations to resolve obstacles—including those related to payment systems.
Earlier, although India signaled a willingness to scale back its dependence on Moscow, state-run refiners have resumed buying Russian oil after a short pause, pushing forward with imports despite higher tariffs and growing criticism from the Trump administration.
