Indian Prime Minister Narendra Modi will visit China later this month, marking his first trip in over seven years. He will attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin, scheduled to begin on August 31. India’s foreign ministry has not confirmed the visit, but government sources say the trip is aimed at rebuilding relations with China. The timing is crucial as India’s ties with the United States have hit a major low over trade and geopolitical issues.
This visit follows recent efforts by both India and China to ease past tensions. The two countries’ relations soured after a deadly border clash in 2020, stalling business and diplomatic exchanges. However, a brief meeting between Modi and Chinese President Xi Jinping during the BRICS summit in Russia last year helped reopen lines of communication. Modi’s upcoming visit may further stabilize ties with Beijing, especially as India balances its international alliances.
Meanwhile, US-India relations are facing serious pressure. President Donald Trump recently announced a steep 25% tariff on Indian goods and hinted at an additional 10% penalty for India’s Russian oil imports. These tariffs could affect nearly $64 billion worth of Indian exports to the US, a figure that makes up about 80% of India’s US-bound trade. According to officials, this is the worst US-India trade crisis in years.
India is now reassessing its global trade strategies. Officials say the direct impact of US tariffs may be limited, as exports form a relatively small portion of India’s $4 trillion economy. Still, the loss of competitiveness could hurt key sectors like garments, pharmaceuticals, and petrochemicals. India’s central bank has kept its economic growth forecast at 6.5%, despite the uncertainty. The trade ministry has not yet responded to the growing concerns.
At the same time, India is strengthening its ties with Russia. National Security Adviser Ajit Doval is currently in Moscow to discuss oil imports, defense deals, and potential diplomatic moves. Foreign Minister Subrahmanyam Jaishankar is expected to visit Russia soon as well. India hopes these strategic moves will offer economic flexibility and political leverage as global alliances shift.