New Delhi:
Prime Minister Narendra Modi will visit China after completing his Japan tour. The visit carries importance at a time of global tensions and economic uncertainty. The United States recently raised tariffs on Indian goods, citing New Delhi’s continued oil imports from Russia. Tariffs began at 25% and later increased to 50%, adding pressure on India’s trade outlook.
Modi to Attend SCO Summit in China
During his trip, PM Modi will attend the Shanghai Cooperation Organisation (SCO) summit on August 31. This will be his first visit to China in seven years. Observers see the summit as a chance to reset ties between India and China, which remain strained after the border standoff in eastern Ladakh and other areas along the LAC.
India–US Trade Strain
India has generally maintained friendly ties with the United States. However, the recent tariff hikes caused friction. Washington accused India of worsening the Ukraine conflict by purchasing Russian oil. New Delhi rejected the claim as unfair, noting that many countries, including the US and EU members, continued significant trade with Russia.
India Seeks Balance with China
To ease pressure from US tariffs, India has been exploring new trade partnerships. Modi’s participation in the SCO summit signals efforts to expand diplomatic and economic cooperation in the region. Chinese Foreign Minister Wang Yi’s visit earlier this year, where he called for India and China to act as “partners, not adversaries,” highlighted the potential for improved ties.
India’s presence at the summit also reflects a shift. Earlier, PM Modi was unlikely to attend after Defence Minister Rajnath Singh refused to sign an SCO draft statement that excluded mention of the Pahalgam terror attack. But the US tariffs gave New Delhi a push to engage more with other partners. If discussions progress, India and China may work toward a trade deal that helps New Delhi diversify exports and reduce reliance on the US market.
India Continues Russian Oil Imports
Despite warnings, India has continued to import oil from Russia. Reports suggest these imports could rise in the coming months to meet domestic demand. Moscow has also offered New Delhi deeper discounts, strengthening bilateral energy ties amid tariff challenges.
India Keeps Dialogue Open with the US
Although facing tariffs, India has avoided a sharp response. PM Modi has not publicly criticized Washington or President Trump. Instead, India is focusing on dialogue to settle differences. According to government officials, New Delhi wants to restart talks on a bilateral trade agreement with the US.
Notably, India has not imposed retaliatory tariffs on American goods. A government source explained:
“Retaliation and negotiations cannot go hand-in-hand. Retaliation is an option, but we prefer talks first.”
This shows India’s strategy of balancing relations with all three major powers—China, Russia, and the US—while protecting its long-term trade and energy interests.