Thu, Aug 28, 2025
The Alaska Summit between US President Donald Trump and Russian President Vladimir Putin could be a turning point in geo-economics and not merely geopolitics.
Following the meeting, not only did the US President talk about a ceasefire, but also a peace agreement between Russia and Ukraine, which will address the root causes of the Ukraine conflict, and change the dynamics to open up huge economic opportunities.
The outcome of this summit will set in motion a process that could not only lift the additional 25 per cent US tariffs on India, but also ease sanctions on Russia that will then open up several sectors for business and investments.
As a result, not only can Indian businesses get relief from the 25 per cent extra tariffs, but also explore opportunities in the Russian market, which would include natural resources, rare earths and technology sectors, to name a few.
Diversification of exports and investment destinations for India is now imperative, as the India-US trade deal seems to have hit a roadblock. The gems and jewellery sector, which is among the worst hit by Trump's tariffs, will have a good prospect in the Russian market.
Similarly, the Indian pharmaceutical industry has healthy prospects of expanding further in Eurasia. An early conclusion of an India-Eurasian Economic Union free trade agreement (FTA) can open up opportunities for India in the Eurasian markets.
Indian businesses have been somewhat risk-averse, especially when it comes to exploring the Russian market in the post-Soviet era, and sanctions have further complicated the situation since the 2014 Crimea crisis. Sweeping sanctions against Russia since 2022 have added to the trouble.
The Alaska Summit has provided a rare opportunity not only for the American investors but also for Indians to penetrate the vast Russian market.
Doval Leads Critical Moscow Mission
National Security Adviser Ajit Doval’s recent visit to Moscow, and his subsequent meeting with Putin, hit headlines. India and Russia have identified key areas of partnership.
Discussions included updates from the subgroups on modernisation, mining, fertilisers, and railway transport, as well as emerging areas of collaboration.
Aerospace science and technology will be the focus areas. The proposed 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 will further enhance cooperation and economic integration between the two countries.
Both sides also explored opportunities in rare earth and critical minerals extraction, underground coal gasification, and the creation of modern industrial infrastructure. The two sides have welcomed enhanced engagement in aluminium, fertilisers, and railway transport, alongside capacity building and technology transfer in mining sector equipment, exploration, and industrial and domestic waste management.
Putin’s visit to India later this year will also usher in a new era in economic partnership that has been in the making for years.
The diversification of markets and economic partners for Indian exporters and investors has been borne out of the tariff shock and Trump’s demand for a trade deal that is tilted in the US's favour.
Inviting Foreign Players In Defence
India is interested in foreign players who are interested in a fair economic partnership with India. This was also a message that was unequivocally delivered by Modi in his August 15 address that focused on self-reliance, innovation, and citizen empowerment, highlighting India’s journey from a nation dependent on others to becoming globally confident, technologically advanced, and economically resilient.
Across sectors ranging from strategic defence to semiconductors, clean energy to agriculture, and digital sovereignty to youth empowerment, the government roadmap seeks to transform India into a US$ 10 trillion economy by 2047, making it globally competitive, socially inclusive, and strategically autonomous. In its goal to achieve self-reliance, certain sectors will have big investments and subsequent export opportunities.
Operation Sindoor is a demonstration of India’s defence self-reliance, and it has opened up opportunities not only for established names in the defence industry but also MSMEs.
The indigenous capabilities, including Made-in-India weapons, can enable India to act decisively and independently and also open up export markets unthinkable even half a decade back.
Drone manufacturing is one such sector — particularly relevant for modern-day warfare. “Mission Sudarshan Chakra”, announced by the PM, is aimed at neutralising enemy defence infiltrations and enhancing India’s offensive capabilities.
The Indian defence sector, with BrahMos missiles, has now earned big points in the Philippines, and prospective customers are growing in numbers. Similarly, defence markets in Latin America, Africa and Europe are lucrative for the defence manufacturers. Indian defence exports are price-competitive and come with no strings attached.
Aatmanirbharta, Space & Semiconductors
The other sector that has immense opportunities for the Indian high-tech industry and startup sector is the semiconductor industry.
India will launch Made in India semiconductor chips by end-2025, reflecting the nation’s growing strength in critical technology sectors. Innovation in artificial intelligence, cybersecurity, deep-tech, and operating systems is necessary for global competitiveness. Similarly, the space sector will also open up a window of opportunity for start-ups.
India is preparing for Aatmanirbhar Bharat Gaganyaan, with ambitious plans for India’s very own space station, signalling a new era of indigenous space capabilities. Over 300 startups are actively innovating in satellites, exploration, and cutting-edge space technologies, ensuring that India is not just participating but leading globally in space science and exploration.
India is also opening the nuclear sector to private players, creating unprecedented opportunities in energy and technology. Private players can benefit from giants like Rosatom and the French nuclear industry.
Meanwhile, it is hoped that the next-generation GST reforms, reducing taxes, will give a big boost to MSMEs. This creates a more conducive environment for business growth, encouraging innovation and economic self-reliance.