India and Russia on Wednesday discussed industrial cooperation across a range of areas, including rare earth and critical mineral extraction, as India faces increasing pressure over its purchase of Russian oil, with the US announcing an additional 25 per cent tariff on Indian goods.
The discussions on rare earth minerals come amid China’s restrictions on the export of seven rare earths, which has impacted automobile production in India. China dominates the global rare earths market, supplying 85 to 95 per cent of the world’s demand.
“Both sides explored opportunities in rare earth and critical mineral extraction, underground coal gasification, and the creation of modern industrial infrastructure,” the Ministry of Commerce and Industry said.
The Ministry added that key focus areas included cooperation in aerospace science and technology — such as the establishment of a modernised wind tunnel facility, production of small aircraft piston engines, and joint development in carbon fibre technology, additive manufacturing, and 3D printing.
DPIIT Secretary Amardeep Singh Bhatia and Deputy Minister of Industry and Trade of the Russian Federation, Alexey Gruzdev, also discussed key areas such as aluminium, fertilisers, and railway transport, alongside capacity building and technology transfer in mining equipment, exploration, and industrial and domestic waste management.
“The meeting concluded with the signing of the Protocol of the 11th Session by both co-chairs, reaffirming the strategic India-Russia partnership and shared commitment to deepen industrial and economic cooperation. The session saw participation from around 80 delegates representing both sides, including senior government officials, domain experts, and industry representatives,” the Ministry said.
On Wednesday, the US said it would impose an “additional 25 per cent ad valorem duty” on Indian goods, over and above the 25 per cent reciprocal tariffs announced on August 1, to “deal with the national emergency stemming from Russia’s actions in Ukraine,” according to a White House statement.
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The additional tariffs significantly raise pressure on India, as most of its competitors — such as Vietnam, Bangladesh, and China — face lower US tariffs in the range of 19 to 30 per cent. However, India’s exports in exempted categories, such as pharmaceuticals and electronics, account for nearly half of its total annual goods exports, which stand at $80 billion.
New Delhi-based think tank Global Trade Research Initiative (GTRI) noted that in 2024 alone China purchased $62.6 billion worth of Russian oil — more than India’s $52.7 billion. Washington has avoided targeting Beijing, GTRI said, because of China’s leverage over critical materials such as gallium, germanium, rare earths, and graphite, which are vital for US defence and technology.
“The US has also overlooked its allies’ trade with Russia: the EU imported $39.1 billion worth of Russian goods last year, including $25.2 billion in oil, while the US itself purchased $3.3 billion in strategic materials from Russia. The tariffs are expected to make Indian goods significantly more expensive in the US, with the potential to cut US-bound exports by 40–50 per cent.”
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