Handpicked updates about India’s business and the business of India
Good morning! Indian sprinter Animesh Kujur just sprinted his way into Indian history with gold in the 200m at the National Inter-State in Chennai. He is on course to be the first-ever Indian male sprinter to line up at the World Athletics Championships in Tokyo. “No pressure for medals” is what his coach Martin Owens said for Tokyo, “it’s about soaking in the moment and rubbing shoulders with the greats”. We can probably believe him since he’s not Indian, otherwise that would have just been slang for minimum top 3 beta. Best of luck Animesh!
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Economy & International Trade
Jaishankar Flags Trade Gap With Russia
Image credits: MSN
India and world affairs: External Affairs Minister S. Jaishankar’s visit to Moscow this week comes at a time when New Delhi finds itself at the centre of a tricky trade equation. On the one hand, India’s energy partnership with Russia has expanded significantly since 2022, giving Moscow a reliable buyer for its oil exports. On the other, Washington has been tightening the screws, most recently with President Donald Trump’s announcement of a 50% tariff on India, including a 25% levy directly tied to New Delhi’s purchase of Russian crude.
India-Russia trade: Against this backdrop, Jaishankar used his meetings in Moscow, including a call with President Vladimir Putin, to raise a pressing concern: India’s trade deficit with Russia has ballooned. In FY25, India imported goods worth $63.7 billion, largely oil, while its own exports to Russia stood at just $4.88 billion. That leaves a gap of nearly $59 billion. The Minister underlined that for this relationship to remain sustainable, Moscow must begin to import much more from India - pharmaceuticals, agriculture, textiles, and other products that have been facing regulatory and non-tariff hurdles.
The US factor: Even as India nudges Russia to buy more, the larger challenge lies in how New Delhi balances its ties with Washington. Jaishankar recently dismissed US criticism with characteristic bluntness. “It’s funny to have people who work for a pro-business American administration accusing other people of doing business,” he said. “If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys — so if you don’t like it, don’t buy it.”
The comment captures India’s current approach—pragmatic and unapologetic. While ties with Washington remain vital, New Delhi is unwilling to be strong-armed into choices that limit its strategic flexibility.
Looking ahead: India and Russia are already exploring ways to expand bilateral trade to $100 billion over the next five years. Prime Minister Narendra Modi and President Putin are expected to meet in New Delhi later this year, where the issue of trade balance will likely dominate discussions. For India, the priority is clear: continue securing affordable energy from Russia, while ensuring its exporters—whether in pharma, food, or textiles, find more space in the Russian market. Perhaps the challenge is not choosing one partner over another, but finding a balance that serves India’s long-term economic and strategic interests.
