India and the US, who have a mutual commitment to raise bilateral trade volumes to $500 billion by 2030, are now at odds. The interim trade deal is in jeopardy, after US President Donald Trump announced ‘penalties’ for India for doing trade with Russia, claiming both are “dead economies” and will go down together.
But why is Trump upset with his ‘friend’ Modi? As the West is trying to force Putin to capitulate and end the war against Ukraine, he feels India’s business is helping him fund the war efforts. His perception is backed by numbers. India’s crude oil import mix from Russia skyrocketed from a mere 0.2 per cent before the Ukraine war to about 35–40 per cent by mid‑2025, making Russia India’s largest oil supplier, according to media reports.
Trump said in a post on Truth Social, “They (India) are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine.” “India has always bought a vast majority of their military equipment from Russia,” he added.
China retaliated saying, it will always ensure its energy supply in ways that serve its national interest. India too stated it will safeguard its interests. But Trump is not pleased. “Russia and the USA do almost no business together. Let’s keep it that way,” US president urged.
Here is a look at India Russia trade relations
1. India–Russia trade hits record $68.7 billion in FY25, six-fold surge since pre-pandemic era
Bilateral trade between India and Russia touched a record high of $68.7 billion in the financial year 2024-25. This marks a nearly six-fold increase from the pre-pandemic level of $10.1 billion. According to the Embassy of India Moscow, Russia, India and Russia are now working towards a bilateral trade target of $100 billion by 2030. They also discussed long-term energy contracts and joint manufacturing of spare parts for Russian defense equipment in India.
2. Russia enjoys trade surplus with India, driven by oil imports
Russia enjoys the Trade surplus with India as India’s exports worth $4.88 billion and imports from Russia amounts to $ 63.84 billion by FY25.
Key Indian Imports include large volumes of crude oil, fertilizers, minerals, machinery, metals, and wood-based products.
Indian exports included agricultural products like rice, fish, shrimp, tea, coffee and grapes, along with chemicals, pharmaceuticals, machinery, and garments.
3. India imports 2.08 million barrels per day of Russian oil
India is the second-largest purchaser of Russian crude oil. According to a report by PTI, in June 2025, India’s crude oil imports from Russia surged to an 11-month high of approximately 2.08 million barrels per day (bpd). This uptick outpaced the combined imports from Saudi Arabia and Iraq, as Indian refiners bolstered inventories amid escalating Israel–Iran tensions and sought alternatives outside Middle Eastern supply routes.
According to CREA data cited by CNBC-TV18, “In June, India remained the second-largest purchaser of Russian fossil fuels, importing fossil fuels worth 4.5 billion euros. Crude oil accounted for 80% (3.6 billion euros) of these imports,” the report said.
4. Russia remains India’s top defence partner; BrahMos and AK-203 rifle in production under Make in India
Russia continues to lead as India’s top defence partner, accounting for over 60 per cent of India’s foreign military imports, according to the Embassy of the Russian Federation in the Republic of India. This includes critical spare parts and components for systems manufactured under licence in India.
A major milestone in this relationship is the joint development of the BrahMos cruise missile and the establishment of Indo-Russia Rifles Private Limited (IRRPL), which has commenced production of AK-203 assault rifles in India under the “Make in India” initiative.
India and Russia are currently collaborating on multiple key defence projects. These include the licensed production of T-90 tanks and Su-30MKI aircraft, the upgrade and supply of MiG-29 fighters, and the procurement of Kamov-31 helicopters.
5. Bilateral investments rise with target of $50 billion by 2025
Investment flows between the two nations are also increasing. Indian companies have invested around $16 billion in Russia, mainly in oil and gas, pharmaceuticals, and IT. Russian firms have invested approximately $20 billion in India, primarily in petrochemicals, banking, infrastructure, and steel. India and Russia are currently working to increase bilateral investments to $50 billion by 2025.