Modi-Putin Talks in New Delhi: Why India-Russia Trade, Defence and Energy Ties Matter

New Delhi: Prime Minister Narendra Modi and Russian President Vladimir Putin held talks in New Delhi on September 11, with India-Russia relations, trade, defence, energy and global conflicts forming an important part of the discussions.

The meeting came just ahead of the BRICS summit being hosted by India and marked the second meeting between Modi and Putin in less than two weeks. Their earlier meeting took place on August 31 on the sidelines of the Shanghai Cooperation Organisation summit in Bishkek.

The latest talks are significant because India is trying to maintain strategic relationships with multiple major powers at a time when geopolitical tensions are affecting energy supplies, shipping routes and international trade.

Why the Modi-Putin meeting is important

India and Russia have maintained close strategic relations for decades. While defence cooperation has historically been one of the strongest pillars of the relationship, economic and energy ties have become increasingly important.

The two countries are now looking to increase bilateral trade to $100 billion by 2030, compared with nearly $70 billion in 2024-25. The discussions therefore come at a time when both sides are looking for ways to expand commercial ties beyond traditional defence cooperation.

Trade is becoming a bigger part of the relationship

India and Russia have been working to expand cooperation across several sectors, including manufacturing, infrastructure, technology, fertilisers, critical minerals, railways and steel.

The countries are also seeking to improve industrial cooperation. Modi and Putin visited an India-Russia industrial exhibition showcasing Russian and Indian capabilities in areas such as artificial intelligence, aviation, space, nuclear science, heavy engineering, mining and banking.

Explainer: Why is the $100 billion trade target important?

A larger trade relationship could help India diversify its sources of key commodities and strengthen access to Russian energy and industrial resources.

For Russia, deeper trade with India provides an important economic relationship with one of the world's largest consumer markets at a time when Moscow faces extensive Western sanctions.

However, achieving the $100 billion target will require India and Russia to address practical issues such as payments, logistics, shipping, insurance and trade imbalances.

Russian oil remains a major factor

Energy is one of the biggest reasons India-Russia economic relations have remained resilient.

India has continued purchasing large quantities of Russian crude despite Western sanctions imposed after Russia's invasion of Ukraine. The disruption to Middle Eastern energy supplies in 2026 has made Russian crude even more important for Indian refiners.

According to Reuters, Russia's share of India's crude imports reached 51% in July 2026, although the share was expected to moderate in August as Chinese purchases of Russian oil increased.

Why does Russian oil matter to India?

India is one of the world's largest energy-consuming economies. Affordable and reliable crude supplies are important for keeping transportation, manufacturing and other parts of the economy functioning.

This is why New Delhi has repeatedly argued that its energy decisions are driven by national economic and energy-security requirements.

Defence cooperation remains strategically important

Defence is another major pillar of the India-Russia relationship.

Russia has historically supplied a large share of India's military equipment, while the relationship has increasingly moved toward joint development and manufacturing rather than simply buying finished weapons.

Projects such as BrahMos, as well as cooperation involving aircraft, missiles and other military systems, demonstrate the depth of the defence partnership. India has also sought to increase domestic manufacturing under its Make in India strategy.

For India, maintaining defence cooperation with Russia is also significant because its armed forces continue to operate a large amount of Russian-origin equipment.

The Black Sea and West Asia are also important

The Modi-Putin discussions were not limited to bilateral issues.

The two leaders exchanged views on conflicts in West Asia and the Black Sea region, both of which have consequences for maritime trade and the safety of Indian seafarers.

India has emphasised dialogue and diplomacy as the preferred route for resolving international conflicts. Modi also reiterated India's willingness to contribute to peace efforts.

Explainer: Why are shipping routes important for India?

India depends heavily on maritime routes for both imports and exports.

When conflicts threaten major shipping corridors, the consequences can include:

• Higher freight and insurance costs
• Longer shipping routes
• Higher energy transportation costs
• Delays in imports and exports
• Pressure on commodity prices
• Greater risks for Indian seafarers

Therefore, India's concern about the security of sea lanes is directly connected to its economic interests.

India is balancing relationships with Russia and the West

The Modi-Putin meeting also highlights India's broader diplomatic strategy.

New Delhi has maintained its longstanding relationship with Moscow while simultaneously developing closer economic, technological and strategic ties with the United States, Europe, Gulf countries and other partners.

This balancing act has become more complicated because of the Russia-Ukraine war and wider geopolitical tensions.

India's approach has generally been to maintain strategic autonomy, allowing it to engage with different powers according to its national interests.

BRICS adds another layer to the meeting

Putin's visit comes immediately before the BRICS summit in New Delhi.

The expanded BRICS grouping brings together major emerging economies and energy-producing nations, but its members do not always share the same views on international conflicts or economic policy.

India's hosting of the summit gives New Delhi an opportunity to push discussions on trade, investment, energy security and global economic cooperation while maintaining dialogue with countries that have very different geopolitical positions.

What happens next?

The Modi-Putin meeting suggests that India-Russia relations are likely to remain strategically important despite the changing global environment.

Both countries want to expand trade, strengthen industrial cooperation and maintain established defence and energy relationships.

Putin has also invited Modi to Russia for the 24th India-Russia Annual Summit, and Modi has accepted the invitation. The dates will be decided through diplomatic channels.

Bottom line

The latest Modi-Putin talks are about much more than a traditional diplomatic meeting.

For India, Russia remains important for energy security, defence supplies, industrial cooperation and strategic diplomacy. For Moscow, India represents a major economic partner and an important relationship in the wider Global South.

The bigger challenge will be turning political goodwill into higher trade, more investment and stronger industrial partnerships while India continues to navigate a complicated global geopolitical environment.