India strengthens trade ties with Russia and China at SCO

India, SCO

India strengthens trade ties with Russia and China at SCO. The India strengthens trade ties with Russia and China agenda dominated Prime Minister Modi’s meetings in Tianjin. As a result, the India strengthens trade ties with Russia and China narrative now anchors India’s near-term trade posture amid US tariff headwinds.

SCO diplomacy and tariff backdrop

India deepened diplomatic outreach with Russia and China at the SCO. Modi and Putin discussed fertilizer, space, security, culture, and broader trade. However, US tariffs of 50pc on Indian goods complicate the backdrop. Meanwhile, Washington says talks continue despite stalled negotiations. A Delhi think-tank projects India’s US exports dropping to $49.6bn by FY2026 from $86.5bn. Therefore, India is reinforcing alternative corridors and market access.

Energy ties and trade outlook

Energy remains the spine of India-Russia trade. India imported 1.78mn b/d of Russian crude in January–August. Reliance led with over 600,000 b/d, supported by a term deal for up to 500,000 b/d of Urals. However, state refiners trimmed purchases as Urals discounts narrowed. Indian buyers briefly paused in late July after new EU sanctions and US tariff risks, then resumed. Meanwhile, ministers aim for $100bn in India-Russia trade by 2030 and a renewed EAEU FTA push.

The Metalnomist Commentary

India is hedging tariff risk with eastward diplomacy while protecting energy security through Urals flows. Watch the tariff trajectory, SCO follow-through, and refinery margins as discounts tighten; these will shape crude slates and bilateral trade math.