India's External Affairs Minister Subrahmanyam Jaishankar recently visited Moscow to strengthen ties with Russia, with both nations aiming to increase their annual trade by 50% to $100 billion within the next five years. This initiative comes as both countries face mounting tensions with the United States.
Jaishankar, during his visit, emphasized the need to remove trade bottlenecks and reduce non-tariff barriers to achieve this ambitious trade goal. Currently, Russia is India's fourth-largest trading partner, while India ranks as Russia's second-largest partner.
The visit, from August 19-21, 2025, also involved Jaishankar co-chairing the 26th India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation. He also addressed the India-Russia Business Forum in Moscow. This diplomatic engagement follows increased tariffs imposed by the US on Indian goods and penalties for purchasing Russian crude oil.
US President Donald Trump had previously doubled tariffs on Indian goods to 50%, including an additional 25% penalty for buying Russian crude. Despite these strains, trade talks between the US and India are reportedly still ongoing, indicating efforts to resolve the deadlock.
India's energy procurement from Russia has significantly increased, with Russia's share in total oil imports rising from 1.7% in 2019-20 to 35.1% in 2024-25, making it India's largest oil supplier. This shift occurred after Western sanctions on Moscow following the Ukraine conflict, with India maintaining that its energy decisions are driven by national interest and market dynamics.
