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Can India Balance a US Trade Deal and a Warm Welcome for Putin?

As Vladimir Putin stepped off his aircraft in New Delhi and into an embrace from Prime Minister Narendra Modi, the moment crystallized India’s increasingly complex diplomatic posture.

Modi is courting Washington for a trade breakthrough while simultaneously rolling out the red carpet for one of America’s most sanctioned adversaries. It is a dual-track strategy that reflects India’s rising confidence—and the growing leverage it believes it can extract from both sides.

Putin’s visit, his first to India since launching the war in Ukraine, comes at a moment of economic pressure for Modi. New Delhi is negotiating a trade deal with Washington, urgently seeking relief from the steep 50% tariffs imposed by President Donald Trump, partly in response to India’s aggressive purchasing of cheap Russian oil.

India has made gestures to ease tensions, trimming its Russian crude imports and committing to buy millions of tons of US liquified petroleum gas. Yet, the optics of Modi hugging Putin as he arrives for talks will not go unnoticed in Washington.

For India, however, the relationship with Moscow is not optional. Much of its military hardware still originates from Russia, and New Delhi sees ongoing defense cooperation—including potential purchases of advanced Su-57 fighters—as essential to maintaining deterrence against Pakistan and China.

This necessity is sharpened by the fact that Russia remains a close partner to Beijing, even as China supplies the bulk of Pakistan’s modern arsenal. India, sitting between two nuclear-armed rivals with whom it has unsettled borders, views diversification as strategic insurance.

Economically, the partnership has deepened since the Ukraine war began, with India emerging as one of the largest buyers of discounted Russian oil. Western frustration has mounted, culminating in Trump’s tariffs and renewed scrutiny of India’s trade balance.

Putin has rejected the criticism outright, pointing to ongoing US purchases of Russian nuclear fuel and questioning why India should be held to a different standard.

This financial pressure, ironically, appears to be nudging India closer to Beijing. Modi’s recent trip to China—the first in seven years—signaled that New Delhi is willing to keep multiple diplomatic doors open, especially when it feels cornered by Washington’s economic measures.

Still, the Biden and Trump administrations alike have viewed India as an essential counterweight to China, expanding defense cooperation and technology transfers.

New Delhi remains confident that it can pursue a deep trade pact with Washington while maintaining a “time-tested” friendship with Moscow.

Whether India can keep this balance without provoking Washington remains to be seen.

With major defense contracts under negotiation and a trade deal still unresolved, Modi is performing one of the most delicate diplomatic tightropes in global politics—hugging Putin while hoping Trump will lift the tariffs.

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