As tensions escalate with the United States over trade and energy policy, Indian Prime Minister Narendra Modi struck a defiant tone, urging citizens to prioritize locally made products and reaffirming the nation’s commitment to protecting its economic interests. His remarks come in response to US President Donald Trump’s recent imposition of 25% tariffs on Indian exports and threats of further action if India continues to import Russian oil.
Sources told Bloomberg that no official directive has been issued to Indian refiners to stop purchasing Russian crude, and decisions remain commercially driven. Both state-owned and private refiners are continuing imports based on price and availability.
Speaking at a public rally in Uttar Pradesh, PM Modi said, “The world economy is going through many apprehensions – there is an atmosphere of instability. Whatever we buy, there should be only one scale: we will buy those things which have been made by the sweat of an Indian.”
India’s energy ties with Russia, its long-time strategic ally, have drawn increasing scrutiny from Western nations since the start of the war in Ukraine. The US has accused India of supporting Moscow through continued oil purchases, which have surged to account for nearly one-third of India’s crude imports. The European Union and the US have both called out Indian refiners for indirectly funding Russia’s war efforts by purchasing discounted oil.
US deputy chief of staff Stephen Miller echoed Washington’s growing frustration, saying on Sunday that India imposes “massive tariffs” on US goods, manipulates immigration, and continues energy deals with Russia. “All options are on the table,” Miller warned, signaling potential economic or diplomatic pressure to discourage Indian cooperation with Moscow.
Despite US President Trump’s public claim that India would cease buying Russian oil, Indian officials have denied such a commitment. The New York Times reported that Indian authorities have decided to continue the purchases, citing strategic autonomy and price advantages. A spokesperson for India’s Oil Ministry did not respond to requests for comment.
Foreign Ministry spokesperson Randhir Jaiswal defended India’s foreign policy, saying, “Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country.” He expressed confidence in the India-US relationship, even as tensions rise.
India is also firm on not opening its dairy and agriculture sectors to US competition, a major sticking point in ongoing trade negotiations. Nevertheless, US trade negotiators are expected to visit New Delhi later this month to resume talks.
As India faces increasing pressure from Washington, PM Modi’s messaging around economic nationalism and the “Make in India” campaign has gained urgency. “The interests of our farmers, our small industries, and the employment of our youth are of paramount importance,” he said.
With the world watching, India appears poised to chart its own course, balancing strategic autonomy with global diplomacy, even amid growing fault lines in international relations.
