Commerce, defence and nuclear cooperation will form the crux of the next chapter of the India-Russia bilateral, which Prime Minister Narendra Modi will have to script during his tour to Moscow
Prime Minister Narendra Modi will embark on his first state visit to Russia from December 23 to 24, to hold an annual summit with Russian President Vladimir Putin in Moscow. The meeting between the two leaders will provide an opportunity to review bilateral relations between the two countries and is expected to take India-Russia ties to a new level.
Expanding economic ties between the two countries should be on top of the agenda. Remember, during last year’s summit in New Delhi, both leaders set a target of $30 billion bilateral trade by 2025. To achieve this, a study group for free trade agreement had been set up.
Besides prospective investments from Russia in the National Infrastructure Fund, there is a possibility that a joint innovation fund will be created. The two leaders will also review sectoral cooperation on trade, commerce and economic cooperation, priority investments etc.
Both India and Russia have reasons to deepen their economic ties. Russia is undergoing a severe economic crisis, augmented by the imposition of Western economic sanctions. The sharp decline in oil prices has also made matters worse, and so has Moscow’s termination of several joint projects with Ankara following the shooting down of a Russian fighter jet by Turkish forces. India can play an important role in boosting Russia’s economy.
From India’s point of view, initiatives like Make in India and Skill India can benefit from Russian investment. Many Russian firms have shown their willingness to invest in Indian construction and infrastructure projects.
At the same time, Indian companies are also ready to explore major investment options in Russia, especially in the sectors of coal, fertilisers, hydrocarbons, minerals and rare earth metals.
Another sector that’s on the cards is defence cooperation — an important pillar of India-Russia ties. Recently, the Government of India has cleared the purchase of an estimated Rs40,000 crore Russian S-400 Triumf air defence missile systems and also decided to purchase 120 trawls from Russia at the cost of Rs450 crore.
These deals will be formally sealed during Mr Modi’s visit. Also, during Mr Modi’s trip, Moscow will set up a production line for 200 light helicopters for India, which are to be jointly manufactured.
Over the last decade, Russia’s position as India’s top-most defence exporter to India has been eclipsed by the US and Israel. Russia has lost many important Indian contracts. This has generated much heartburn among Russian strategists and diplomats.
On the other hand, Russia’s decision to supply to Pakistan Mi-35 Hind attack helicopters and Klimov RDP93 engines for the JF-17 has alarmed the Indian defence establishment. Pakistan and Russia are also holding talks on the possible sale of the Sukhoi Su-35 fighter jet.
India has witnessed a sharp rise in Russia-China defence ties as well. The assertive foreign policy of a rising China in the Indo-Pacific, the US-Pakistan relationship, and the China-Pakistan nexus require India to take initiatives to improve ties with Russia.
It is expected that during Mr Modi’s trip, India and Russia will take substantive steps to cement nuclear cooperation as well. Minister of State in the Prime Minister’s Office Jitendra Singh has already informed lok Sabha as much. India will offer Russia a site in Andhra Pradesh to build six nuclear reactors of 1,200 megawatts each.
New Delhi’s efforts to seek Moscow’s help in this lies in the fact that US firms, General Electric and Westinghouse, are still enthusiastic to enter India’s nuclear energy sector but unable to do so because of the liability law that makes reactor suppliers liable in case of an accident. Thus, deeper engagement with Russia in the civil nuclear area will help India expedite the building of nuclear reactors for generating clean energy — which is crucial for sustaining robust economic growth rate.
Also, by selling nuclear reactors to India, Russia will be able make some amount of compensation for the loss caused by the refusal of European countries to buy gas from it after the Ukraine crisis.
The above-discussed issues make it necessary for India and Russia to take concrete steps towards re-instating confidence and trust into the time-tested friendship. Thus, the upcoming visit of Prime Minister Modi is very timely in shaping the relationship between the two countries in the emergence of a new strategic environment in the Indo-Pacific where close engagement between India and Russia has become as important, if not more than ever in the past, for achieving their national interests.
(The writer is a doctoral fellow at Pondicherry University)