Having worked firmly together over the years in the defence and security areas, India and Russia are now moving forward to increase their trade and commerce relationship in a big way.
Ahead of President Vladimir Putin’s visit to India this October for the Annual Summit level talks, the two sides are working to ramp up the ties with new collaborations.
Defence and security still remain prime collaborating areas, sources said but pointed out that the two sides are moving fast on new dimensions that include aerospace, ship building, port development, diamonds, pharmaceutical, railways, inland waterways, shipbuilding, manufacturing, mining, agriculture and food processing. Apart from these, there are talks for partnership between Indian States like Maharashtra, Andhra Pradesh and Rajasthan with regions in Russia.
Sources conceded that economy and trade have shrunk between the two sides which they are trying to get back on track.
The “warmth” in relation between Putin and Modi should see the two sides stepping up interactions in specific areas for collaborations apart from the traditional military technology, energy, and civil nuclear cooperation.
Interestingly, despite sanctions by the United States on Russia, India’s relationship with Moscow has remained robust and multi dimensional. India's security relationship with Russia has been so unique that there is a saying that if there is a security situation in India, the first call made will certainly be to Russia.
Russia too has backed India in all odds and evens. The military and civil nuclear partnership remains robust and Russia has helped India immensely in capacity building in this sector. From submarines to helicopters, Sukhois to sophisticated weapons-there is collaboration in all areas.
There is also talk of India procuring Fifth Generation Fighter Aircrafts from Russia for which some initial investment seems to have been made by India. Through FGFA, New Delhi is looking at getting some cutting edge technology and “something ahead of curve” for its defence sector. Some progress is expected to be made during Putin’s visit next month on the FGFA.
India is also particularly happy with the Kamov 226 deal with Russia. Out of the 200 helicopters that India is buying, 60 will be in fly away conditions with the rest 140 to be jointly made in India.
India is happy that this first major defence project under Make in India will help strengthen its own military aviation sector.
However, the Indian side is making efforts to encourage more Russian participation through Make in India and have joint ventures with Indian private companies.
Though there seems to be a bit of reluctance on the Russian side to get involved with private entities in India as in this niche area they prefer government to Government dealings, the Indian side is trying its best to convince their Russian partners, sources said adding Putin’s involvement may help in this regard.