Putin and Modi hold talks and announce expansion of Russia-India trade ties
By RAJESH ROY and AIJAZ HUSSAIN
NEW DELHI (AP) — Russian President Vladimir Putin spoke with Indian Prime Minister Narendra Modi at an annual summit Friday and agreed to diversify mutual economic ties, as the United States presses India to overhaul its decades-old partnership with Russia.
The 23rd Russia-India summit comes at a pivotal time as the United States pushes for a peace deal in Ukraine while seeking global cooperation. This will test New Delhi’s efforts to balance its relations with Moscow and Washington as the nearly four-year-old war in Ukraine continues.
Putin was received by Modi at an airport in New Delhi on Thursday. The Indian leader hugged Putin and shook his hand with the enthusiasm of an old friend.
Leaders highlight growing ties between Russia and India
After the talks, Putin and Modi announced that India and Russia had finalized an economic cooperation program until 2030, which will help diversify mutual activities to increase 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 in March. Trade is heavily skewed in favor of Russia, with deep deficits for India, which it seeks to fill by increasing its exports.
“To achieve this important goal, a program for the development of Russian-Indian economic cooperation until 2030 was agreed,” Putin said. He said work was underway on a deal for India to establish a free trade zone with the Eurasian Economic Union, a Moscow-dominated economic grouping of several countries from the former Soviet Union, adding that it could help increase trade.
“Russia is a reliable supplier of energy resources and everything necessary for the development of the Indian energy sector,” Putin said. “We are ready to continue ensuring uninterrupted fuel supply for the rapidly growing Indian economy.”
Ahead of the summit talks, the Russian leader said the two countries “have very trusting relations in military-technical cooperation.”
Modi said after the talks that the two countries would work towards early conclusion of a free trade agreement with the Eurasian Economic Union. He also announced that India would soon start issuing free e-visas to Russian tourists and groups visiting the country.
The Indian leader said energy security has long been a pillar of India-Russia relations, with civil nuclear cooperation spanning decades. He added that such cooperation would continue, alongside collaboration in clean energy, shipbuilding, fertilizers and labor mobility.
US seeks to distance India from Russia
Although India has historically enjoyed deep ties with Russia, critics say Putin’s visit could strain relations with the European Union and the United States and jeopardize negotiations for major trade deals with those two countries, seen as key to Indian exports.
US President Donald Trump increased tariffs on Indian goods to 50% in August, citing the price of Russian oil in New Delhi. India is the second largest importer of Russian crude after China.
The United States says Russian oil purchases help finance Moscow’s war machine. In October, the United States sanctioned two of Moscow’s largest oil producers to force countries like India to cut imports. Indian officials said New Delhi had always respected international sanctions and would do so in the case of Russia’s oil purchases.
Indian Foreign Minister Vikram Misri told reporters that recent sanctions on Russian oil had been discussed.
Without specifying India’s position on its purchases, Misri said the government’s priority was to secure the energy needs of its 1.4 billion people.
Misri said India’s private and state-owned oil companies make decisions based on changing market dynamics and commercial issues they face while sourcing.
“We continue our cooperation between the two countries,” he said.
India and the United States have set a target for the first tranche of a trade deal by the fall, but the deal has yet to be reached due to strains in relations, mainly due to New Delhi’s incessant imports of Russian crude.
India is also in the final stages of negotiations on a trade deal with the EU, which views Russia’s war in Ukraine as a major threat.
Given the timing and geopolitical context, Putin’s visit to India “underscores New Delhi’s strategic brinkmanship between the West and the rest, primarily Russia,” said Praveen Donthi, a senior analyst at the International Crisis Group.
Donthi said India’s inclination towards Russia dates back to the Cold War and persists despite its official non-alignment stance. “The significant change now is its desire to be at the same time a strategic partner with the United States, which will pose a diplomatic challenge,” he added.
Defense and Trade Expansion on the Maps
Indian officials earlier said Modi, in the meeting with Putin, would push for faster delivery of two more Russian S-400 surface-to-air missile systems. It already received three in a 2018 deal worth about $5.4 billion. The delay is linked to supply chain disruptions linked to the war in Ukraine.
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Russian President Vladimir Putin receives a guard of honor during a solemn reception at the Rashtrapati Bhavan in New Delhi, India, Friday, Dec. 5, 2025. (AP Photo)
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Russian President Vladimir Putin receives a guard of honor during a solemn reception at the Rashtrapati Bhavan in New Delhi, India, Friday, Dec. 5, 2025. (AP Photo)
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Misri said the defense ministers of India and Russia met on Thursday.
In a joint statement after the summit, the two sides said they agreed to encourage joint manufacturing in India of spare parts and components for maintenance of weapons and defense equipment of Russian origin. This would be done through technology transfer and the creation of joint ventures.
India and Russia signed an agreement in February to improve military cooperation, exercises, port calls, disaster relief assistance and logistical support. The Moscow State Duma ratified the same before Putin’s visit to India.
India also plans to upgrade its Russian-made Su-30MKI fighter jets and speed up deliveries of critical military equipment.
India wants to increase its exports of pharmaceutical, agricultural and textile products to Russia and seeks to remove non-tariff barriers. New Delhi is also seeking long-term supplies of fertilizer from Moscow.
Another key area where the two countries hope to finalize an agreement is the security and regulation of skilled Indian migrant workers in Russia.
Putin last visited India in 2021. Modi was in Moscow last year and the two leaders met briefly in September in China at a Shanghai Cooperation Organization summit.
Hussain reported from Srinagar, India.
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