PM Modi's presence in Russia
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Recently, the Prime Minister of India made a major visit to Russia to attend the 22nd India-Russia Annual Summit with the President of Russia. This visit has demonstrated India's commitment to a multipolar approach to international relations.
Highlights of the 24th SCO Summit
- Strong ties amid geopolitical challenges
Despite the complex and challenging geopolitical environment, India and Russia have demonstrated the resilience of their bilateral relations. Both countries have expressed commitment to a balanced, mutually beneficial, sustainable and long-term partnership.
- Goal to enhance trade and economic cooperation
The leaders have set an ambitious goal to promote and sustain bilateral trade growth, targeting US$ 100 billion by 2030.
They have also agreed to promote the use of national currencies in bilateral trade to enhance economic cooperation.
- Advancing key infrastructure projects
Commitment has been expressed to accelerate key projects such as the Chennai-Vladivostok Corridor, International North-South Transport Corridor (INSTC) and the Northern Sea Route. These projects are expected to boost connectivity and trade between the two countries.
- Energy sector cooperation
The energy sector has emerged as an important pillar of the special and privileged strategic partnership. Russia has agreed to increase the supply of coking coal and export anthracite coal to India, which will further strengthen energy cooperation.
- Agreements on Far East and Arctic cooperation
The two countries have signed an agreement for cooperation in trade, economic and investment activities in the Russian Far East from 2024 to 2029.
Additionally, they have agreed to cooperate in Russia's Arctic region, opening up new avenues for joint ventures and development.
- Nuclear and Space Cooperation
Progress in the construction of the remaining nuclear power plant units at Kudankulam has been welcomed, with both sides committing to adhere to the timetable and delivery deadlines.
Partnership for peaceful space exploration between India's ISRO and Russia's Roscosmos has also been promoted, including human space flight programme, satellite navigation and planetary exploration.
- Defence Manufacturing and Technology Transfer
India and Russia have agreed to promote joint manufacturing of defence equipment in India, including technology transfer and allowing exports to friendly countries. The move is aimed at enhancing defence cooperation and self-reliance.
- Commitment to Science, Technology and Innovation
The two countries have agreed to enhance cooperation under the Roadmap for Science, Technology and Innovation Cooperation 2021, which reflects their commitment to advance scientific and technological cooperation.
- Condemnation of terrorist attacks
The leaders have strongly condemned the recent terrorist attacks on the army convoy in Kathua sector (Jammu and Kashmir) and Crocus City Hall in Moscow and reiterated their stand against terrorism.
- Highest civilian honor for PM Modi
President ‘Vladimir Putin has conferred Russia’s highest civilian honor ‘Order of St. Andrew the Apostle’ on PM ‘Narendra Modi in recognition of his important role in strengthening the strategic partnership between India and Russia.
Significance of the visit
- Increase in trade and transit routes
Reduction in transit time
Increased traffic on the International North – South Transport Corridor (INSTC), Northern Sea Route and Chennai – Vladivostok Sea Corridor can reduce transit time from 40 days to 20 days.
Eurasian trade prospects
A free trade agreement with the Eurasian Economic Union (EAEU) can enable India to play a more active role in Eurasian trade.
- Diplomatic and economic developments
New Indian consulates in Russia
India is setting up new consulates in Ekaterinburg and Kazan, reflecting the growing presence of the Indian diaspora in Russia.
Rise of Indian pharma sector in Russia
The Indian pharmaceutical sector has become a major supplier of medicines to Russia, overtaking Germany. Companies such as Dr. Reddy's Laboratories, Sun Pharma and Cipla have partnered with Russian firms to produce generic drugs locally.
Russian banks invest in Indian economy
Russian banks have invested idle rupees in Indian stocks, government securities and infrastructure projects, reducing the transaction cost of converting rupees to rubles.
- Diplomatic achievements
Repatriation of Indians serving in the Russian armed forces
President Putin's consent to demobilize and repatriate Indians serving in the Russian armed forces is a significant diplomatic win for New Delhi.
Why are India and Russia essential partners?
Strategic independence
Despite attempts by Western countries to align India more closely with their interests, India remains committed to its policy of strategic autonomy.
This firm stance reflects India's desire to conduct its foreign relations independently without succumbing to external pressures.
Revival of Putin’s Global Positioning
The recent visit of the Indian Prime Minister has given a significant boost to the global standing of Russian President Vladimir Putin. This visit is in contrast to the visits of leaders of isolated countries like North Korea or authoritarian regimes like China.
India, as a democratic superpower and the world’s 5th largest economy, plays a key role in global geopolitics.
Russia as a Regional Partner
Russia remains a reliable ally for India, providing a mediating influence in regional issues.
This was particularly evident during the border standoff between India and China, where Russia played a mediating role. The enduring partnership between Russia and India highlights the strategic importance of their bilateral relationship.
Shared Membership and Policies
Both Russia and India are members of important international groupings including BRICS (Brazil, Russia, India, China and South Africa), the G20 and the Shanghai Cooperation Organisation (SCO). Their cooperation within these forums reflects their commitment to an ‘interest-based foreign policy’.
India’s Geopolitical Position
India’s position as a democratic counterbalance to China places it in a favorable ‘geopolitical sweet spot’.
As it seeks to establish itself as a key player in a multipolar world, India will continue to maintain a delicate balance between its relations with the West and Russia.
India’s Diplomatic Posture and Security Strategy
India did not attend Kazakhstan meeting
India’s absence from the recent Kazakhstan meeting indicates a deliberate stance towards the US and the West, making it clear that it is not engaging with Russia amid the ongoing controversy over Russia’s actions in Ukraine.
Shift in Arms Procurement
Despite Russia being India’s primary arms supplier, India has significantly diversified its arms imports, now buying more arms from the US, France and Israel.
No new arms deal with Russia announced during the Prime Minister's recent visit No new arms deal with Russia announced during the Prime Minister's recent visit Despite the continuing security challenges along the Line of Actual Control (LAC), Putin has refrained from criticising China and Pakistan over China's security cooperation with India.
Despite Russia's opposition, India has enhanced its security cooperation with the US through nuclear deals, defence purchases and support for the Indo-Pacific strategy.
Russia's growing ties with China and Pakistan
While India maintains its strategic rivalry with China, Russia is strengthening its ties with China and increasing engagement with Pakistan.
India's role on global platforms
India's participation in the BRICS and SCO as well as the Quad in the Indo-Pacific reflects its strategic position.
Although Xi Jinping sees the Quad as a threat to China's regional dominance, Putin has refrained from criticizing China's actions in the South China Sea.
Commitment to Peace and Diplomacy
India has not condemned Russia’s actions in Ukraine but continues to advocate for peace. The country has participated in the peace summit on the Ukraine conflict held in Switzerland at the appropriate level.
Challenges Pertaining to India-Russia Relations
End of Major Military Deals
The long-standing military-technical partnership between India and Russia has slowed down significantly, with no new major military deal signed since the S-400 anti-missile defence system.
Impact of Ukraine War and Sanctions
The war in Ukraine and Western sanctions have created uncertainties about the timely supply of arms to India.
Additionally, Russia’s close ties with China raise concerns that China may be given preference over India for Russian arms.
Challenges of the Chennai-Vladivostok Corridor
India’s efforts to connect with the Russian Far East and rejuvenate the Chennai-Vladivostok sea corridor are hampered by labour shortages and limited access to foreign markets due to sanctions by Japan and South Korea.
Complications of the INSTC
The International North-South Transport Corridor (INSTC) presents potential hurdles for Indian businesses dealing with sanctioned Iran as well as issues related to frequent cargo handling.
Trade Imbalance and Export Difficulties
Russia has become India’s primary oil supplier but Indian exports to Russia face challenges, leading to a significant trade deficit of US$57 billion in total bilateral trade of US$66 billion for FY24.
Western Pressure and Strategic Autonomy
Russia’s invasion of Ukraine has led to pressure from Western countries on India to distance itself from Moscow.
US Ambassador to India Eric Garcetti has emphasized that in the current global context, “war is no longer far away” and “strategic autonomy” is a challenging concept in times of conflict.
Next Steps
Strengthening Strategic Partnerships
Frameworks such as annual summits and strategic dialogue mechanisms should be used to strengthen strategic alliances. These approaches aim to strengthen cooperation and ensure effective communication between partners.
Promoting Joint Defence Development
Collaborative efforts in joint defence development projects are essential to enhance technology transfer and self-reliance. This will ensure that both sides can take advantage of shared technological advancements and capabilities.
Expanding Trade Horizons
Trade expansion should move beyond traditional areas such as defence and energy. It is important to diversify economic interactions and include new areas such as technology, pharmaceuticals and agriculture to maximize mutual benefits.
Cooperating on Global Platforms
Working together on international platforms, including the UN, BRICS and SCO, is important to address global challenges and promote shared interests. This cooperation will strengthen the partnership’s global influence and effectiveness.
Using media and public diplomacy
Media and public diplomacy should be employed effectively to dispel misperceptions and highlight the benefits of bilateral relations. This strategy will help improve public perception and demonstrate the value of the partnership.
