US Softens Stance After PM Modi's China Visit and SCO Summit. Finance Minister Basant states India is a democracy and trade and energy issues will be resolved together. Disagreements persist over oil purchases from Russia.
India US Trade Tensions: Following Prime Minister Narendra Modi's recent visit to China and his meetings with leaders of Russia and China at the Shanghai Cooperation Organisation (SCO) summit, a discernible shift is being observed in America's demeanor. US Treasury Secretary Scott Basant, commenting on India-US relations, stated that while some differences exist between the two nations, ultimately, these two major countries will resolve their issues collaboratively.
He also remarked that India is the world's largest democracy, and its values are closer to those of America and China, rather than Russia. Basant's statement signals that the US is taking India's perspective seriously, particularly concerning energy and trade matters.
US Displeasure Over Oil Purchases from Russia
The United States has accused India of financially aiding Russia in the Ukraine war through its oil purchases. Basant expressed concern over these purchases, deeming them inappropriate from a global security perspective. India has refuted these allegations, clarifying that its oil procurement is entirely based on national interest and the needs of its domestic market. India has consistently maintained that it is purchasing oil at affordable rates to control inflation and ensure energy stability within the country. While there are clear differences of opinion between the US and India on this matter, both nations have expressed a willingness to resolve it through dialogue.
Modi-Putin-Xi Meeting at SCO Summit
At the 2025 SCO summit, Prime Minister Modi engaged in cordial and warm discussions with Russian President Vladimir Putin and Chinese President Xi Jinping. A clear camaraderie was evident among the three leaders during the summit, with several photos going viral on social media. Although the US has labeled the SCO as a 'performative' organization with limited impact, India, under Modi's leadership, played an active and balanced role at the summit.
Tensions Over Trade Tariffs
The US decision to impose a 50% tariff on India has created friction in the trade relations between the two countries. The US administration claims this tariff is a consequence of India's oil purchases from Russia. India has termed this action unfair and absurd, stating that its policies are solely driven by national interest and domestic requirements. Basant also acknowledged that trade negotiations between the two nations are progressing slowly and require resolution.
US Stance on Russia
Basant made b remarks against Russia, stating that Russia has intensified its bombing of Ukraine, which the US finds condemnable. The Trump administration is considering further stringent measures against Russia, with all options on the table. India has consistently clarified that it is not aligned against any country and its policies are based solely on national interest. Oil purchases from Russia are part of India's energy interests and are solely aimed at meeting domestic demand.
Prospects for Stability in India-US Relations
Basant expressed confidence that India and the United States will resolve their differences. The two countries share deep-rooted relationships, particularly in defense, technology, and strategic sectors. Despite this, the issues of trade tariffs and oil purchases from Russia continue to be sources of tension. India has made it clear that it will not compromise on its energy needs and economic stability.
