India's Prime Minister Narendra Modi will join the 47th Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur virtually from October 26 to 28, 2025, citing ongoing Diwali celebrations. This move, confirmed via a conversation with Malaysian Prime Minister Anwar Ibrahim, occurs amid strained trade relations with the United States over tariffs and Russian oil imports.
The US has imposed tariffs of up to 50% on Indian exports, driven by concerns over New Delhi's purchases of Russian oil. President Donald Trump recently claimed that Modi assured a scale-down in imports from Moscow, though India has not verified this. Trump hinted at a potential visit to India next year if invited by Modi, describing trade discussions as "going good" and stating India has "largely stopped buying oil from Russia".
Negotiations between the two countries could lead to tariff reductions on Indian exports from 50% to around 20% by year-end, easing economic tensions. However, challenges persist, including agricultural imports and India's reliance on discounted Russian crude, which sells at its steepest discount to Brent in a year.
Modi's virtual participation rules out a face-to-face meeting with Trump at the summit, potentially delaying significant trade breakthroughs. The ASEAN gathering includes key partners like the US, China, and Japan, focusing on regional stability and energy flows.
These developments underscore India's balancing act between energy security and diplomatic alignment, with implications for global trade dynamics and market sentiments.
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