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MODI'S DILEMMA - TRUMP VS PUTIN
January 01 - 31, 2026
|BUSINESS ECONOMICS
Prime Minister Narendra Modi's post-2014 growing proximity to the United States is seen by some analysts as having generated mistrust in Russia. Yet, despite Modi going so far as to virtually campaign for Donald Trump with the slogan “Abki Bar Trump Sarkar” and embracing him like a soulmate, it did not prevent Trump from slapping India with a 25 per cent tariff and penalty. From India’s perspective, this was not diplomacy; it was a national embarrassment— one man’s blind friendship costing the country dearly. It was a foreign policy disaster of epic proportions.
Over the past decade, India has drawn closer to the United States, tentatively aligning itself with Washington while continuing to eschew formal alliances. The Indian leadership welcomed Trump's return to the White House because of the apparent chemistry between Trump and Modi. India soon realised its miscalculation and began reassessing its American gamble as Trump flipped from friend to not-so-friend, ramping up pressure on New Delhi. The increased tariffs were ostensibly meant to penalise India for its continued purchase of Russian oil.
It was during Modi’s tilt towards the US that the India-Russia partnership first encountered serious turbulence. For the first time since 2021, India and Russia went for an extended period without signing a major arms deal. Modi also refrained from publicly supporting Russia’s war in Ukraine. In fact, several arms agreements were cancelled or suspended, including those for 49 new Mi-17 helicopters and the modernisation of Su-30 MKI fighters. There is no denying that this phase created distance, for the first time, in Indo-Russian relations and also prompted Russia to improve its ties with Pakistan.
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