Even though India and Russia share a good bilateral relation, experts would prefer greater economic co-operation
Even though India has good bilateral relations with its time-tested partner Russia, but on the economic front, no substantial changes have been seen on the ground, despite both the nations’ best efforts to put their economic ties back on track.
This was one of the core areas of concern discussed among the experts from India and Russia, who recently participated in a video conference, organised by Sputnik, between Moscow and New Delhi, ahead of India’s 73rd Independence Day celebrations. In the discussion, experts from both sides echoed that the bilateral relationship between the countries, though solid, requires a transformation in the economic sphere.
India’s former foreign secretary Kanwal Sibal said that our country has come a long way from where it was when it gained independence from colonial rule in 1947. “Our economy has transitioned in the last three-and-a-half decades and has become the fifth-largest economy in the world. It will be a $5 trillion economy by 2025. This opens up economic opportunities for both the countries. India values its ties with Russia in several spheres, but we need to expand our trade relations,” said Sibal.
In 2017, Russian investments in India had reached up to $18 billion and India’s total investment in Russia so far has been $13 billion. “This year, we have a stable government and a strong leader who has vision for all the sectors. This is evident in programmes like Make in India, Clean-up India, Digital India, and Rural Uplift among others. There are serious challenges but our leader has given us an assurance of progress. With Russia’s cooperation, this vision is all the more achievable.”
Russia’s former Ambassador to India General (Retired) Vyacheslav Trubnikov, said, “India today is a confident country that has a consistent understanding of its interests. International integration with this country and its economy can make it one of the strongest powers in the world. Russia obtains international standing by co-operating with India.”
Sibal, however, was specific in pointing out that bilateral economic cooperation between both countries is lagging behind at just $11 billion. “We have to do more on this front, create incentives for the economic sector and work towards making it more Eurasia-centric. A programme has been announced by Prime Minister Narendra Modi and we hope it is achieved.”
The two countries have called for diversifying and deepening of economic ties in priority sectors to meet the bilateral trade target of $30 billion by 2025, said the commerce ministry. On whether regional forums like the Shanghai Co-operation Organisation (SCO) had a role to play in broadening ties between India and Eurasia, Trubnikov said SCO must be explored as a platform for greater co-operation. However, Sibal said that in a China-dominated SCO, only Russia was in a position to question or challenge an initiative that may not be in the interest of other countries in the region.
He also said that Russia and India need to be wary about the security and geopolitical advances being made by China and the United States in the Eurasian and Indo-Pacific region. He further said one had to only look at the involvement of US in Iran and Syria and that of China across Europe, Sri Lanka and Nepal to understand that both the countries were on a geo-political space grab mission.
Kupriyanov pointed towards a lack of trust between India and China currently. Security and strategic expert, Brigadier (Retired) Rahul K Bhonsle said that India needs to watch China’s maritime ambitions in the Indian Ocean Region (IOR) carefully. Alexie Kupriyanov, researcher at the Russian Academy of Sciences, said a favourable environment between India and China was the need of the hour to facilitate economic integration bilaterally and regionally. He suggested that India ink a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU) similar to the one the EAEU has signed with Vietnam.
Gulshan Sachdeva, professor at Jawaharlal Nehru University, said, “In the Eurasian context, India’s relations with Europe and Asia have improved 50 per cent in terms of the partnership. Regional integration is taking place efficiently. Every nation, however, has its own integration plans.”
Dr Boris Volkhonsky, professor at the Institute of Asian and African Studies, Moscow State University, said, “India and Russia need to have more dialogue in the spheres of trade, transit, energy; they have to go beyond. The North-South Trade Corridor has not taken off for various reasons. India has not endorsed China’s BRI (Belt Road Initiative). And integration in Eurasia has two dimensions — geopolitical and developmental economics.”
Bhonsle added, “India is at an inflection point. It has political stability, strong leadership but also needs strong following. India needs to become a leading power of the world.”
Source: smartgovernance.in