PM Narendra Modi visited Russia in his first Bilateral Visit in his third term. This is also the first time that the Indian PM Narendra Modi and the Russian President Vladimir Putin met in person after the Russia invasion of Ukraine in February 2022.
The visit to Russia is a statement of the importance New Delhi accords to its relationship with Moscow. The visit underlines India’s foreign policy priority and the importance of deepened India-Russia Relations.
In this article, we will analyse the significance of India-Russia relations, the challenges this relation faces and the way forward for further strengthening of the relation.
| Key Highlights of the Recent 22nd India-Russia Annual Summit a. Increasing the Bilateral Trade- India and Russia agreed to increase bilateral trade to $100 billion dollars by 2030. This includes the use of national currencies to circumvent Western sanctions. b. New connectivity routes- India and Russia agreed on completion of new connectivity routes like the Chennai-Vladivostok maritime route, Northern Sea Route and the International North–South Transport Corridor via Iran. c. Increasing investment in priority areas- India and Russia agreed on enhancing investments in the energy sector including nuclear energy, infrastructure development. d. MoUs between institutions- India and Russia signed a number of MoUs between institutions on climate change, polar research, legal arbitration and pharmaceutical certification. e. Streamlining Defence Cooperation- The delay in defence supplies was discussed. Both parties have committed to exploring more areas of co-production of defence equipment such as the India-Russia joint venture for assault rifles. f. Facilitation of the Indian Prime Minister- Prime Minister accepted Russia’s highest civilian honour, the Order of St Andrew the Apostle. |
What is the history of India Russia Relations?
Russia has been a longstanding and time-tested partner for India. Development of India-Russia relations has been a key pillar of India’s foreign policy. It is pertinent to look at the historical development of India-Russia relations.
India and Russia (formerly the Soviet Union) have had a longstanding and strategic relationship since the establishment of formal diplomatic ties in April 1947, just months before India’s independence. The relationship has evolved over the decades, with periods of both cooperation and tension.
| Early Years (1947-1955) | Initial relations between the newly Independent India and Soviet Union were negligible due to ideological differences. Soviet Union under Stalin viewed India’s independence movement with suspicion. However, this began to change in the 1950s, with key visits by Indian PM Nehru to Moscow in 1955 and Soviet leader Khrushchev to India later that year. The steel plants at Bhilai and Bokaro were direct outcomes of these visits. |
| Cold War Era (1955-1991) | India and the Soviet Union developed a strong strategic, military, economic and diplomatic relationship during the Cold War. The Soviet Union became a major supplier of arms and military equipment to India, strengthening its defense capabilities. It played a crucial role in various conflicts, including the 1962 Sino-Indian War and the 1971 Indo-Pak War. The Treaty of Peace, Friendship and Cooperation signed in 1971 was a key milestone in India-Russia relations. It included a security provision for mutual consultations in the event of a threat to either country. |
| Post-Cold War (1991-2000) | Post Cold War and the dissolution of the Soviet Union in 1991, India-Russia relations weakened due to economic challenges and the changing global landscape. The Treaty of Friendship and Cooperation signed in 1993 attempted to revive ties between India and Russia. However, the cooperation in most areas declined. |
| Phase of Strategic Partnership | Signing of the ‘Declaration on the India-Russia Strategic Partnership‘ in 2000 elevated the India-Russia ties to a new level. This strategic partnership has enhanced cooperation in political, security, defense, trade, economy, science, technology and culture. High-level engagements like the annual India-Russia Summit have further strengthened the relationship. |
What are the areas of Cooperation between India and Russia?
1. Geopolitical Cooperation- India and Russia have close geopolitical cooperation
a. Engagement of India and Russia in regional forums like BRICS, SCO and the G20.
b. India refrained from adverse voting in the UN, and disregarded Western threats of sanctions on its energy imports from Russia.
c. India and Russia champion the establishment of a multi-polar world order.
d. Strong condemnation of terrorism in all its forms and all terrorist “safe havens” by both the Countries.
2. Defense Cooperation- Russia is a major defense equipment supplier to India.
a. Military Hardware and Technology Transfers- Licensed production of T-90 tanks and Su-30 MKI aircraft in India; agreements for the supply of S-400 Triumf mobile surface-to-air missile systems, MiG-29K aircraft, Kamov-31 helicopters, and upgrade of MiG-29 aircraft; Joint development and production of military platforms like the BrahMos supersonic cruise missile; and establishment of Indo-Russia Rifles Private Limited (IRRPL) to produce AK-203 rifles in India under “Make in India”.
b. Joint Military Exercises- Tri-service military exercise ‘INDRA‘, Avia Indra joint air force exercise.
c. Institutionalized Mechanisms for Defense Collaboration- Establishment of India-Russia Inter-Governmental Commission on Military Technical Cooperation (IRIGC-MTC) at the apex level; and 2+2 Dialogue mechanism involving the Defense and Foreign Ministers in 2021.
3. Economic Cooperation- India and Russia share close economic relations. These are explained below-
a. Trade and Investment- The bilateral trade between India and Russia stands at around $65 billion. India’s imports of Russian crude at discount has surged in after the invasion of Ukraine led to the oil sanctions by the U.S. and Europe.
b. Cooperation in the Russian Far East- India provides financial and personnel assistance to develop the resource-rich but sparsely populated Russian Far East region bordering China. A 5-year program of cooperation in the Far East for 2021-2025 is being finalized between NITI Aayog and Russia’s Ministry for Development of the Far East.
c. Close Business Cooperation- India and Russia have both institutionalised CEO’s Forum. Indian companies invest in Russia, especially in natural resources such as coal, fertilizers, hydrocarbons, minerals, rare earth metals.
d. Banking and Financial Links- India and Russia have explored on deepening banking and financial links such as ruble-rupee trade; and collaboration between financial institutions like SBI and VTB Bank.
4. Scientific and Research Cooperation- Since the cold war era, Russia has been a major scientific and research partner of India.
a. Civil nuclear energy Cooperation- India and Russia jointly developed Kudankulam Nuclear Power Plant (KKNPP). India and Russia have jointly signed agreements on the construction of 12 nuclear power plants in India during the coming decades.
b. Space relations- Russia and India have signed an agreement to train Indian astronauts for India’s first manned space mission (Gaganyaan). C-DAC and GLONASS have signed the agreement for cooperation in technologies based on satellite navigation.
c. Health- India approved Russian Vaccine Sputnik V under emergency use authorization.
5. Diaspora and Cultural Relations- India and Russia have a deep diaspora and cultural relation. The following are the areas of engagement between India and Russia.
a. Respect for languages and Culture- Hindi, and other languages such as Tamil, Marathi, Gujarati, Bengali, Urdu, Sanskrit and Pali are taught in Russian Institutions. Organizations like the Indian Cultural Centre in Moscow and the Indian Students’ Association promote Indian culture and heritage in Russia.
b. Indian Diaspora- The Indian diaspora in Russia is estimated to be around 30,000-40,000, which consists of mostly professionals, students and businesspeople.
c. Extension of line of Credit for Russian Far East- India has extended $1 billion as a line of credit for the development of the Russian Far East.
What is the significance of India Russia Relations?
1. Geopolitical- Deepened strategic partnership with India holds a lot of geopolitical importance for India.
a. Russian support on critical Issues- Russia supports India’s demand for permanent seat in the UNSC. It has also supported India’s stand on the Kashmir Issue.
b. Counterbalancing Chinese Aggression- Russia can help in defusing rising tensions with China.
2. Defense- Russia still remains a critical defense supplier for India with 60-70% of India’s defense equipment estimated to be of Russian and Soviet origin. Though India has diversified its defense imports from countries like US, France, it still cannot alienate Russia especially in the face of Chinese aggression at the border.
3. Economic- The purchase of large amounts of Russian oil at a discount, cushions India from the inflationary impact of rising crude prices. India is contemplating a Free Trade Agreement (FTA) with the Eurasian Economic Union led by Russia.
4. Strategic Balancing-
a. Smooth India-Russia relations offers India a better bargaining chip in negotiations with the western powers. It also offers India to strategically balance and align with the powers according to its national interest. For ex- PM Modi’s visit is taking place when leaders of the 32 nations in the North Atlantic Treaty Organisation (Nato) gather in Washington DC to celebrate 75 years of the anti-Russia military alliance.
b. Close India-Russia relations provides New Delhi the opportunity to offset the Chinese advantage in Eurasia.
What are the Challenges in the relation?
1. Deepening of India-US relations- The India-US relations is rapidly deepening especially in the defense sector, which is exemplified in the India-US nuclear deal in 2008, US emerging as the top arms supplier to India by overtaking Russia and India-US Foundational agreements such LEMOA, COMCASA, BECA.
Due to these developments, Russia changed their decades-old policy and start supplying China with weapon systems like Sukhoi 35 and the S-400 missile defence system.
2. Russia’s growing dependence on China- Moscow and Beijing have forged the closest possible ties in their history. This has generated fears that Russia will become a subordinate partner given the growing economic, demographic and technological asymmetry between them. This could jeopardize Moscow’s neutrality on Sino-Indian tensions.
3. Russia’s increased engagement with Pakistan- Russia has been increasing its economic and defence cooperation with Pakistan, like conduction of bilateral exercise Friendship. The RCP axis (Russia, China, Pakistan) will be detrimental to India’s national interest.
4. Trade Imbalances- Even though the bilateral trade between the two nations has increased in the face of crude oil imports, there is considerable trade imbalances between India and Russia. Of the total trade of $65 billion, India’s exports constitute less than $5 billion.
5. Defense Delays- There have been considerable delays in the delivery of military spares and big-ticket weapon systems like the S-400 Triumf surface-to-air missile systems, to India due to the Ukraine War.
6. Ukraine Crisis- The continuing Russia-Ukraine war has put India into a diplomatic tightspot. India has been facing significant criticism for not condemning the invasion and continuing energy and economic cooperation with Moscow.
What Should be the Way Forward?
1. Neutral Player in the resolution of Ukraine Crisis- India must continue to maintain its positioning as a neutral player that could be a mediator between the two sides in the resolution of the Ukraine Crisis. India must continue to appeal to both sides to ‘abide by the international rules and conventions‘.
2. Addressing defense supply chain shocks- India and Russia must explore setting up joint venture partnerships to address the shortage of critical defense spare parts.
3. More diplomatic and financial investments- India and Russia must invest more diplomatic and financial resources to finish the pending works for the International North-South Transport Corridor. Both sides should expedite discussions on the Free Trade Agreement with the Eurasian Union for better trade and commerce.
4. Enhanced focus on Eurasia- India and Russia have to explore their opportunities in the Eurasian region. India can study the possibility of expanding Russia’s idea of ‘extensive Eurasian partnership‘ involving the EAEU(Eurasian Economic Union) and China, India, Pakistan, and Iran.
5. Unequivocal message to the Western countries- India must send unequivocal message to the West that Russia occupies a pivotal place in India’s strategic calculations. It must be conveyed that the West needs India just as much as India needs the West.
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