NEW DELHI: Indian Prime Minister Narendra Modi is scheduled to visit China for the first time in more than seven years, signaling a potential easing of diplomatic relations with Beijing amidst escalating tensions with the United States.
Government official confirmed the details on Wednesday, stating that Modi would attend the Shanghai Cooperation Organization (SCO) summit starting August 31. The Indian Foreign Ministry has yet to comment.
This visit coincides with a period of strained US-India relations, after President Donald Trump imposed significant tariffs on Indian imports—among the highest in Asia—and threatened additional penalties over India’s purchases of Russian oil. Modi’s trip to Tianjin for the SCO summit marks his first visit since June 2018. Relations between India and China worsened after a border conflict along their Himalayan boundary in 2020. However, recent high-level talks, including a meeting between Modi and Chinese President Xi Jinping at the BRICS summit in Russia last October, have helped ease some tensions. The two countries are now gradually improving their economic and diplomatic ties.
Meanwhile, Trump has threatened to levy an extra 10% tariff on imports from BRICS nations, including India, accusing them of aligning with anti-American policies. The US administration is also deliberating on penalties related to India’s continued Russian oil purchases, especially as diplomatic efforts for a ceasefire in Ukraine continue in Moscow.
In parallel, India’s National Security Adviser Ajit Doval is in Russia discussing defense cooperation and India’s Russian oil imports amid US pressure. He is expected to also address the possibility of a visit by Russian President Vladimir Putin to India. Following Doval’s trip, Foreign Minister Subrahmanyam Jaishankar will visit Russia in the coming weeks.
Trade tensions between the US and India, worth over $190 billion, have been exacerbated by political missteps and miscommunications. India’s internal assessment indicates that US tariffs could cost Indian exports to the US—valued at approximately $81 billion in 2024—about $64 billion, representing roughly 80% of its total exports. However, given the size of India’s economy at around $4 trillion, the direct impact on overall growth is expected to be limited.
Despite the tariff uncertainties, India’s Reserve Bank maintained its GDP growth forecast at 6.5% for the fiscal year, and interest rates remained steady. The government estimates that a 10% penalty on Russian oil purchases could raise US tariffs to 35%, influencing trade dynamics and export competitiveness.
India’s foreign trade ministry has not responded to requests for comment, and the government continues to monitor the evolving tariff landscape
