Russia is India's largest defense arms supplier, a fact that has long irked the United States. During Pakistan conflicts, India's adept use of Russian and indigenous weapons garnered global attention, including from America. Now, the US has flagged its issues with India's defense dealings. On Tuesday, US Commerce Secretary Howard Lutnick criticized India-Russia defense relations, suggesting that India's arms acquisition from Russia is a means to perturb America.
Speaking at the eighth session of the US-India Strategic Partnership Forum, Lutnick noted that India's longstanding arms trade with Russia has become a sticking point in its dealings with the US.
The American Commerce Secretary mentioned that President Donald Trump broached this issue with India and claimed that the Indian government is taking steps to resolve it. Lutnick also noted India's progression toward purchasing military equipment from the US.
'The Indian government has undertaken actions typically unwelcome to the US,' he remarked. 'For instance, routinely securing military supplies from Russia. If India opts to acquire weaponry from Russia, it serves to annoy America.'
US Commerce Secretary's Take on BRICS
The US Commerce Secretary also critiqued India's interactions within BRICS—a coalition of Brazil, Russia, India, China, and South Africa aimed at challenging Western dominance. Recent buzz around a BRICS-linked currency surfaced, potentially contesting the dollar's supremacy in global trade, but official updates are yet to surface.
This development irked the US significantly. At the forum, a US State Secretary echoed concerns, expressing disdain for opposing the dollar's dominance. 'As BRICS members cultivate such ties, pledging to end dollar support won’t win America's friendship or sway its people,' the Secretary added.
India's Growth Despite US Pressure
Presently, about 60% of India's defense weaponry is of Russian origin. Following recent skirmishes with Pakistan, Prime Minister Narendra Modi extolled the country's air defense prowess on Tuesday, placing special emphasis on the performance of the Russian-engineered S-400 missile defense system. Addressing the military, Modi proclaimed, 'Platforms like the S-400 have endowed our nation with unmatched strength.'
India procured the S-400 missile defense system from Russia in a $5.4 billion contract in 2016, undeterred by Washington's sanction threats.
India also inaugurated a production unit for the BrahMos supersonic cruise missile in Uttar Pradesh, bolstering its defense reserves amidst a volatile security climate.
The US - India's Top Trade Partner
The fiscal year 2024-25 saw US-India trade reaching $131 billion, reaffirming the US as India's chief trading partner.
India exports more to the US than it imports, resulting in an American trade deficit exceeding $41 billion. The US persistently queries this gap and, like with other nations, has implemented reciprocal tariffs on India.
India-Russia Trade Dynamics
Concerning Russia-India trade, despite mounting pressures on Russia following the 2022 Ukraine conflict, this trade has grown. The US has urged India to cease Russian trade, yet bilateral trade surpassed $60 billion. Both nations aim to escalate their trade tie to $100 billion.
