Ajit Doval, India’s national security adviser, reaffirmed the country’s “strategic partnership” with Russia on Thursday after discussions with Russian military officials. Prime Minister Narendra Modi, in turn, reiterated his commitment to safeguarding India’s agriculture sector through tariffs and regulations, even in light of President Donald Trump’s punitive tariffs.
Modi didn’t directly mention Trump or the United States during his remarks. Instead, he emphasized that his administration “never compromised on the happiness of the peasants.”
“For us, our farmer welfare is the best,” he asserted.
Protectionist measures in agriculture and India’s continued purchase of Russian oil have become major obstacles in advancing trade agreements with the US. On August 1, President Trump imposed a blanket 25% tariff on goods from India—an action that was compounded by another 25% added through a recent executive order, punishing India for buying significant amounts of Russian oil amid its war efforts in Ukraine. This brings the total tariffs to 50%, set to take effect on August 27.
Despite claims that purchases of Russian oil are tapering off due to reduced discounts from Russian suppliers, India has still seen a considerable volume of imports recently.
Even so, India plans to continue trading agricultural goods with the US, regardless of the assurances from Modi and other Indian leaders to protect domestic agriculture. In fact, agricultural trade has surged, rising nearly 50% year-on-year in the first half of 2025.
The US exports various products like nuts, ethanol, soybean oil, and cotton to India, while India exports seafood, spices, oils, rice, fruits, vegetables, and baked goods in return. If current trends hold, India will likely export $7.47 billion in agricultural products to the US, whereas its imports will be just over $3.5 billion.
Trump frequently cites trade imbalances as proof of unfair competition, intending his retaliatory tariffs to include any regulatory barriers perceived as non-arbitrary.
One contentious issue in trade talks lies in India’s refusal to import American ethanol for fuel—a significant point in negotiations. Should this ban be lifted, it could lead to an uptick in ethanol imports. Indian regulations do permit US producers to sell other oils derived from beans and corn, but the country maintains a ban on genetically modified products.
Reports suggest that Indian officials are exploring other concessions to offer Trump before the 50% tariff takes effect. Ideas under consideration include relaxing India’s ban on importing genetically modified corn intended for animal feed.
Another area of contention is India’s dairy market. The country has strict regulations on dairy imports, grounded in Hindu dietary laws, which could complicate any negotiations further.
Currently, India imposes hefty duties on dairy imports—30% on cheese, 40% on butter, and 60% on milk powder. As the world’s leading producer and consumer of milk, India employs over 80 million people in its dairy sector. Officials argue these rules are crucial for protecting jobs and maintaining higher milk prices; imports from the US dairy industry could drive prices down.
While opposition leaders aer vehemently criticizing Modi’s administration for its handling of Trump’s tariffs, many speculate that behind the scenes, Indian officials may be considering maneuvering oil supplies from Russia to state-owned refineries to mitigate Trump’s pressure.
Modi appears to want to maintain strong ties with Russia, potentially as a strategy to counteract the impact of US tariffs, or perhaps as a way to keep the US president wary of further aligning with Russia.
During a recent meeting with Russian Security Council Secretary Sergei Shog in Moscow, Doval praised the “very good relationship” and “strategic partnership” between India and Russia.
Shog, in return, described their cooperation as essential in forming a new, just, and sustainable global order while emphasizing the need to uphold international law against modern threats.
As a critique of Trump’s tariffs, Shog referred to the “superiority of international law,” amid the ongoing aggressive actions against neighboring countries. The Kremlin had previously condemned Trump’s attempts to pressure India regarding Russian oil purchases, labeling them “illegal.”
Kremlin spokesperson Dmitry Peskov stated on Tuesday that sovereign nations ought to have the right to choose their trading partners and the terms of their trade.
While in Moscow, Indian officials indicated they would address India’s Russian oil purchases, particularly as they continue to seek arms deals with Russia, even as India diversifies its military procurement to include Western suppliers.
Doval’s discussions about oil and weapons signal that India is gauging potential agreements with Russia while leaving room for negotiations with the US.
