Putin's India Visit: Strengthening Energy and Defence Ties, Aiming for Increased Exports in Key Sectors.

Russian President Vladimir Putin has begun a two-day visit to India, seeking to strengthen energy and defense cooperation with New Delhi. This visit, Putin's first in four years, occurs amidst a shifting global landscape marked by sanctions, evolving oil markets, and geopolitical tensions that have impacted the long-standing partnership between the two nations.

Putin's agenda is focused on boosting Russian energy and defense exports to India. Russia has historically been a major supplier of arms to India, providing over 70% of India's major conventional arms in past decades. Moscow aims to reinforce its defense presence in the Indian market by pitching new sales, including advanced missile systems like the S-500, and fighter jets. In the energy sector, Russia is interested in expanding its sales of Russian oil.

India has emerged as a top buyer of Russian seaborne crude, especially after Western sanctions curtailed Moscow's access to its traditional customers following the invasion of Ukraine in February 2022. However, India's crude imports from Russia are expected to decline to a three-year low this month, due to tighter sanctions and increasing oil purchases from the United States.

During the summit with Indian Prime Minister Narendra Modi, Putin is accompanied by Defense Minister Andrei Belousov and a delegation of senior leaders from Russian banking, oil, arms, and industrial sectors. Discussions are expected to cover a wide range of areas, including defense, nuclear energy, hydrocarbons, space, technology, and trade. Both countries have also increased the use of local currencies for settling payments related to bilateral trade.

Experts suggest that Putin's visit provides an opportunity for India to reaffirm its special relationship with Moscow and potentially secure new arms deals. It is anticipated that new initiatives will be announced, focusing on achievable areas of cooperation.

However, Indian officials are wary of potential reactions from the United States, particularly from U.S. President Donald Trump, who previously imposed tariffs on Indian goods in response to India's purchases of Russian crude. India seeks to balance its ties with the U.S. while pursuing economic and strategic engagements with Russia.

Despite India's efforts to promote indigenous defense production under the "Atmanirbhar Bharat" program, Russia remains a crucial partner in the defense sector. The focus is expected to be on next-generation air-defense systems. Earlier this year, the Russian S-400 system was reportedly used to defend India from drone attacks.

India's exports to Russia have remained relatively low, while imports from Russia have increased significantly, particularly in oil and defense. India aims to boost its exports to Russia and the current visit is expected to provide direction to the relationship in the evolving geopolitical and economic landscape.


Written By
Aditi Patel is a business and finance journalist passionate about exploring market movements, startups, and the evolving global economy. Her work focuses on simplifying financial trends for broader audiences. Aditi’s clear, engaging writing style helps demystify complex economic topics. She’s driven by the belief that financial literacy empowers people and progress.
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