Prime Minister Narendra Modi is tilting further toward Asia as U.S.–India ties sour under sweeping tariffs from Washington. On visits to Japan and China, Modi is seeking strategic partnerships while bolstering energy security with rising imports of Russian crude. India bought 1.73 million barrels a day between January and July 2025, and volumes are set to increase by up to 300,000 barrels a day in September despite U.S. penalties.

Tariffs Strain U.S.–India Relations

The Trump administration’s tariff escalation has shaken India’s economy and unnerved investors. The levies, imposed over New Delhi’s oil trade with Moscow, threaten exports in textiles, gems, and carpets. Modi has stood firm, saying access to affordable energy is “non-negotiable.”

Japan: Economic Security Partner

In Tokyo, Modi is advancing agreements on semiconductors, critical minerals, and artificial intelligence, tied to a $68 billion investment package. The move is designed to offset tariff damage and strengthen supply-chain resilience.

China: A Tentative Reset

Modi will then head to Beijing for his first visit in seven years, attending the SCO summit hosted by Xi Jinping. While longstanding border disputes remain unresolved, the two sides have resumed direct flights, reopened pilgrimage routes, and struck tentative trade understandings on rare earths.

Oil At The Core

Russia now supplies up to 40% of India’s crude imports, a figure that underscores the central role of discounted Russian oil in Modi’s wider strategy. The policy highlights India’s attempt to balance between Washington, Tokyo, and Beijing while securing its own energy and economic interests.