U.S. Pressures India On Trade And Defense Amid Russian Arms Deal

Photos: Wikipedia.

India-West News Desk

WASHINGTON, DC – As India finalizes a $248 million agreement with Russia to upgrade its aging T-72 tank fleet, the U.S. is intensifying its push for a revamped trade and defense relationship. U.S. Commerce Secretary Howard Lutnick, speaking to India Today on March 7, urged India to lower tariffs and shift its defense purchases from Russia to American suppliers to secure a “grand” bilateral deal.

India’s defense ministry announced that the contract with Russian arms exporter Rosoboronexport would modernize 2,500 T-72 tanks with new 1,000 HP engines, improving battlefield mobility. The deal includes technology transfer to India’s state-owned Armoured Vehicles Nigam Ltd. Despite India’s longstanding reliance on Russian military equipment, Moscow’s war in Ukraine has disrupted its ability to meet supply commitments.

Lutnick’s remarks come as Washington prepares to implement reciprocal tariffs in April, impacting Indian exports across multiple sectors. He called India’s 12% average tariff rate—among the highest globally—an obstacle to deepening economic ties. “We want to bring India’s tariffs down to near zero, except for agriculture,” Lutnick said, adding that India must open its market while negotiating protective quotas for sensitive sectors.

Defense remains a key friction point. Lutnick directly called for India to phase out Russian defense purchases, emphasizing that the U.S. is ready to supply sophisticated military hardware, including F-35 fighter jets. Since 2008, India has purchased over $20 billion in U.S. defense products, but the Biden administration seeks further alignment.

With Indian Trade Minister Piyush Goyal rushing to, and in the U.S. for a week pressure is mounting for a realignment of India’s defense procurement and trade policies.

Also Read:- Rep. Khanna In Op-ed Rips Into DOGE, Wants Progressives To Talk Directly To People