New Delhi: The Government of India is steering through a challenging global trade landscape as the North Atlantic Treaty Organization (NATO) and the United States (US) intensify pressure over its energy imports from Russia, while forging strategic partnerships to safeguard economic stability.
The Ministry of External Affairs (MEA) responded to NATO chief Mark Rutte’s warning of secondary sanctions on countries purchasing Russian oil, stating, “Securing energy needs of our people is understandably an overriding priority for us.” The MEA highlighted concerns about “any double standards on the matter,” signalling India’s frustration with Western nations’ selective energy policies.
The US, under President Donald Trump, has advanced the Russia Sanctions Act, proposing up to 500% tariffs on nations trading with Russia, as discussed during External Affairs Minister S Jaishankar’s Washington visit in June 2025. The MEA noted India’s objections were conveyed to US officials, including Senator Lindsey Graham, stating, “We have seen reports on the subject, and are closely following the developments.”
India is countering these pressures through strategic engagements, with the MEA supporting the revival of the Russia-India-China (RIC) trilateral mechanism, explaining, “This consultative format is a mechanism where the three countries come and discuss global issues and regional issues of interest to them.” The India-Russia summit, planned for New Delhi, awaits scheduling, with the MEA noting, “The dates will be worked out between both sides, keeping in mind what is mutually convenient to both countries.” A proposed Russia-Myanmar-India economic corridor, linking Russia to Yangon via Mumbai, is under consideration, with the MEA Spokesperson Randhir Jaiswal emphasising, “It is also important to see the feasibility of it.” At the Brazil, Russia, India, China, and South Africa (BRICS) summit in Kazan, October 22-23, 2024, Prime Minister Narendra Modi advocated for local currency trade, with the MEA clarifying, “De-dollarisation is not something which is on the agenda.” The India-European Union (EU) Free Trade Agreement (FTA) negotiations, with the 12th round concluded in Brussels on July 11, 2025, aim for a year-end conclusion, with Jaiswal stating, “The two questions are not related,” dismissing NATO’s impact on the FTA.
Russian oil, constituting 35% of India’s crude imports in 2024, remains critical for energy affordability, according to a Ministry of Petroleum and Natural Gas report. The RIC mechanism, inactive since 2019, could foster dialogue on trade and counterterrorism, but its revival faces challenges due to India-China border tensions. The India-Russia summit builds on Modi’s July 2024 visit to Moscow, where a $100 billion trade target by 2030 was set, with a focus on energy, defence, and technology.
The Russia-Myanmar-India economic corridor, discussed in a July 2024 meeting between Myanmar’s Transport Minister and Russia’s Roscongress Investment Fund, aligns with India’s Act East policy but faces challenges due to Myanmar’s junta-led instability, as noted in a TASS report from July 2024. The BRICS summit’s joint statement emphasised financial inclusion, sustainable development, and digital cooperation, with India resisting US tariff threats of 10% on BRICS nations. The India-EU FTA, covering goods, services, and investment, has progressed, with the 13th round scheduled for September 2025 in New Delhi, per EU trade updates.
India’s energy diversification strategy includes increasing imports from the Kingdom of Saudi Arabia and Iraq, though Russia’s discounted oil remains vital, saving an estimated $10 billion annually, per a 2025 Ministry of Finance analysis. The RIC mechanism’s revival could bolster India’s global influence, but coordination with China remains complex due to ongoing boundary disputes, as discussed in regional cooperation contexts. The economic corridor’s feasibility studies, involving the Asian Infrastructure Investment Bank (AIIB), estimate infrastructure costs at $2 billion and assess geopolitical risks, per an AIIB report on July 10, 2025.
The sanctions threat risks economic disruption, prompting Jaishankar to advocate pragmatic trade policies at international forums, as noted in the MEA’s 2024 annual report, published July 11, 2025, highlighting India’s Group of Twenty (G20) role within the Troika framework. The BRICS platform’s focus on local currencies, including India’s rupee-based trade with Russia, aims to reduce dollar dependency, aligning with the Kazan summit’s outcomes. India’s engagement with Venezuela for alternative oil supplies, initiated in June 2025, could diversify imports by 10% by 2026.
The India-EU FTA negotiations address tariff reductions, intellectual property, and sustainable development, with India seeking greater market access for textiles and pharmaceuticals. The economic corridor could boost India’s exports to Southeast Asia by 15%, per a Ministry of Commerce projection, but Myanmar’s instability requires careful risk management.
India’s strategic diplomacy balances Western pressures with Eastern alliances, ensuring energy security and economic growth. India’s BRICS engagement strengthens cooperation in fintech and green energy, with the Kazan summit launching a $500 million fund for renewable energy projects, per the BRICS joint statement.
The MEA’s approach to sanctions avoids escalation while protecting strategic interests, with India exploring liquefied natural gas (LNG) imports from Qatar to offset potential disruptions, per a Ministry of Petroleum report. The RIC, India-Russia summit, and EU FTA reflect India’s commitment to multipolarity, navigating a polarized global landscape with pragmatic trade strategies.
– global bihari bureau
