Page 5 - The Indian EYE 082925

COVER STORY AUGUST 29, 2025 | The Indian Eye 5

ing partners, largely thanks to dis- ships without committing exclusively
counted oil purchases after Western to any.
sanctions. Yet, this trade boom has China, despite being a rival, is
created a massive imbalance, with also a trade partner and a neighbor
Indian exports lagging far behind im- India cannot ignore. Russia, though
ports. Jaishankar was candid: “Both weakened by sanctions, remains a
the diversification and balancing of reliable defense supplier and ener-
trade now urgently mandate more gy partner. The United States, even
strenuous efforts.” with tariffs, is indispensable for tech-
nology, investment, and balancing
India is urging Russian firms to China in the Indo-Pacific.
By engaging all three simulta-
invest in infrastructure, manu- neously, India is signaling that it will

facturing, and energy projects, not be pushed into a corner. Modi’s
acceptance of Xi’s SCO invitation,
citing opportunities created by Jaishankar’s embrace of Lavrov, and
its USD 4-trillion economy. Mos- India’s continued participation in the
Quad with the US, Japan, and Aus-
cow, for its part, is keen to lock tralia all reflect this nuanced balanc-

in India as a long-term energy ing act.
Yet, this strategy is fraught with
buyer and a partner in circum- risks. The border question with Chi-
venting Western sanctions. na is unresolved and could flare up
Russia’s Foreign Minister Sergey Lavrov with External Affairs Minister S Jaishankar at their again. Economic cooperation, while
talks in Moscow on Thursday (@RusEmbIndia X/ANI Photo) desirable, cannot mask deep security
Jaishankar also confirmed the concerns. With Russia, overdepen-
signing of Terms of Reference for a dence on energy imports could trap
free trade agreement between India cent duty, his administration had transactional approach. While India India in an unsustainable imbalance.
and the Eurasian Economic Union, suspended India’s benefits under the continues to engage Washington— And with the US, the risk of further
a move likely to deepen economic Generalized System of Preferences especially on defense and technolo- tariffs or political tensions remains
integration. (GSP), citing unfair trade practices. gy—it is unwilling to let its economic high, especially in an election-driven
The defense dimension remains He repeatedly accused New Delhi growth be hostage to unilateral trade environment.
robust, with Moscow continuing of “taking advantage of the US” on policies. The recalibration towards The larger question is whether
to support India’s “Make in India” issues ranging from pharmaceuticals Beijing and Moscow is, in this sense, India can sustain growth and stabil-
goals through joint production and to digital taxes. The new tariffs, jus- a hedging strategy. ity while juggling these competing
technology transfer. Despite the tified on grounds of India’s Russian pressures. The answer may lie in di-
shadow of the Ukraine war, the oil purchases, reflect his transaction- THE MULTIPOLAR VISION versifying trade, building resilience
strategic partnership has endured, al style—pressuring partners to fall in supply chains, and strengthening
reflecting a rare continuity in an oth- in line with Washington’s strategic ndia’s simultaneous outreach to indigenous capacities—objectives
erwise volatile world. choices. For India, this underlines China and Russia illustrates its that Modi’s government has often
the volatility of relying too heavily on Icore foreign policy instinct: stra- stressed under the banner of Atman-
WASHINGTON STRATEGY the US market. tegic autonomy. Unlike during the irbhar Bharat (self-reliant India).
For New Delhi, the tariffs are Cold War, when alignments were bi-
he backdrop to these dip- more than an economic blow; they nary, today’s multipolar world allows A NEW PHASE
lomatic man oeuvres is the are a political reminder of America’s India to balance multiple relation-
Ttrade shock from Washington. ndia’s outreach to China and
Trump’s decision to impose first 25, Russia in August 2025 is not an
then an additional 25 per cent tariffs Iabandonment of the US, nor is it
on Indian goods—explicitly linking a dramatic realignment. It is a prag-
them to India’s oil imports from matic response to shifting geopoliti-
Russia—has strained the “natural cal winds, particularly Trump’s tar-
partnership” narrative that dominat- iffs. By mending fences with Beijing
ed India-US relations over the past and deepening ties with Moscow,
decade. New Delhi is hedging against uncer-
Jaishankar minced no words in tainty while keeping its options open.
Moscow. He pointed out that India is As the SCO summit in Tianjin
not the biggest purchaser of Russian approaches, India’s challenge will be
oil—China is. Nor is it the largest to sustain this delicate balance—en-
buyer of Russian LNG—that distinc- gaging China without capitulating,
tion belongs to the European Union. expanding with Russia without over-
“We are very perplexed at the logic committing, and managing the US
of singling out India,” he remarked, relationship without succumbing to
highlighting the inconsistency of unilateral pressure.
Washington’s argument. The story of India’s foreign pol-
Trump’s tariff move is not an icy in 2025, then, is one of resilience:
isolated act but part of a broader National Security Advisor Ajit Doval holds the 24th round of border talks with Chinese Foreign a refusal to be boxed in, and a deter-
pattern of economic aggression to- Minister Wang Yi, at Hyderabad House in New Delhi on Tuesday (ANI Video Grab) mination to craft a multipolar future
wards India. Even before the 50 per on its own terms.

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