The News
India’s move to strengthen its energy ties with Russia underscored New Delhi’s balancing act between trading with Moscow and maintaining friendly relations with Washington.
A major Indian refiner last week signed what Reuters described as the biggest-ever energy deal between the two countries, while The Indian Express noted a new maritime route opened this year was helping bolster bilateral trade. India has also awarded a contract to a St. Petersburg firm to build new long-distance passenger train carriages.
Western officials have voiced frustration toward New Delhi’s dealings with Moscow despite opprobrium over Russia’s invasion of Ukraine. India counters that it enforces international sanctions but remains reliant on Russia for military goods, and that such trade also puts a check on Beijing’s influence.
SIGNALS
Energy deals spotlight Modi’s “showmanship” economics
The economic sentiment in India is perhaps the “most upbeat anywhere,” The New York Times wrote. The nation’s economy has doubled in size since Prime Minister Narendra Modi took power, even as its growth rate has barely changed. The prime minister has crafted an exceptionally positive national narrative, the outlet wrote, but that could soon change: US President-elect Donald Trump’s second term will likely depreciate emerging market currencies and hurt investment, Indian outlet The Wire wrote: If Modi doesn’t react to protect the economy, it will be difficult to maintain “self-serving narratives” for long.
India keen to maintain an independent foreign policy
The US must accept India’s growing relationship with Russia, The Diplomat argued, or risk provoking its longtime ally at a time it needs New Delhi as a bulwark against Beijing. Though India values its alignment with Washington — New Delhi is increasingly sourcing arms from the US over Russia — India has indicated frustration at Western pressure to divest entirely from Moscow. The US previously warned India of “consequences” over Russian energy imports and while these have not materialized, any attempts to constrain India’s foreign policy may be seen as “disregard for its sovereignty and provoke ire,” the outlet argued. A closer Russia-India tie could have other benefits: New Delhi has expressed openness to mediating an end to the Russia-Ukraine war.