Why is it in the news?
The US claimed India agreed to stop buying Russian oil under 2026 India–US trade understanding.
The statement revived debate on India’s strategic balancing between the US and Russia.
Category: International relations
Important Points:
● India–US trade volume USD 128 billion; India enjoys trade surplus
● India–Russia trade USD 68.72 billion (2024–25), heavily skewed towards Russia
● India imported USD 63.84 billion from Russia; exports USD 4.88 billion
● USSR supported India during 1971 Treaty of Peace, Friendship and Cooperation
● Russia key defence supplier (~60% of India’s military inventory Russian-origin)
● Kudankulam Nuclear Power Plant symbol of civil nuclear cooperation
● Western sanctions increased India’s discounted Russian oil imports
● US imposed punitive tariffs with monitoring and snap-back clause
● India diversifying energy sources including US and Venezuelan oil
● Guided by multi-alignment and strategic autonomy