INDIA – RUSSIA

INDIA – RUSSIA

Current Relations

1. Economic 
   • Bilateral trade: 8-10 billion USD.
   • Target: USD 30 billion by 2025.
   • Investment:
     • Russian investment in India at $18 billion.
     • Indian investment in Russia at $13 billion.
   • Eurasian Economic Union: India is in talks for an FTA with the Russian-led EEU.
   • Vaccine Imports: Russia approved Sputnik V vaccines to be exported to India and also allowed for its manufacture in India.
2. Security
   • Military exercises (Bilateral):
     
     • Indra (Army)
     • Indra Navy (Navy)
     • Avia-Indra (Airforce)
       
   • Defence Hardware: 60% of Indian military hardware is of Russian origin.
   • Defence equipment (important):
     • BrahMos missile system (jointly developed).
     • Su-30 aircraft (licensed production allowed in India).
     • T90 tanks (licensed production allowed in India).
     • S400 Triumf defence system.
3. Energy Security
   • Indian Presence: Indian oil companies hold stakes in the Russian oil sector.
   • Civil nuclear energy: Agreements on the construction of 12 nuclear power plants.
   • Kudankulam power plant: Joint development.
   • OVL (ONGC Videsh Limited) investment in Sakhalin Oil reserve.
   • Civil nuclear energy: Agreements on the construction of 12 nuclear power plants. E.g., Kudankulam power plant.

1. Strategic
   • Elevation in ties: Strategic partnership elevated to “Special & Privileged Strategic Partnership.”
   • Multilateral support: Russia advocates for India’s entry to NSG & UNSC permanent seat.
   • Foreign Policy: India’s “Act Far East” (1 billion USD LoC to Russia) – Chennai Vladivostok Route.
   • Importance of Russia’s Far East
     • Rich in resources
     • Huge economic & strategic significance
2. Technology-driven Relations
   • Space: ISRO-ROSCOSMOS joint agreement for India’s Human Spaceflight Programme “Gaganyaan.”
   • Missile Tech: Joint development of Brahmos Missile.
3. Multilateral
   
   • SCO
   • BRICS
   • G20
   • Russia-India-China Trilateral
     
4. People to People / Cultural
   • Teaching Hindi: Russian institutions
   • Soft Power: Indian dance, music, yoga, and Ayurveda.
   • Bollywood: Russia has historically had a high viewership of Indian films.
   • Reciprocal festivals: Namaste Russia and Festival of Russian Culture.

Importance/Benefits

1. Economic Importance
   • Mineral Security: More developments as Arctic ice melts, giving scope for exploration.
   • Bilateral Investments: In nuclear energy and fuel security.
   • Russian Tourists: Contribute significantly to India’s Forex.
   • Central Asian Trade Routes: Russia is the destination port for India’s engagements through INSTC and the Ashgabat agreement.
   • Pharma Market: India has emerged as a reliable supplier of quality generic drugs to Russia.
   • Rough Diamonds: Russia is a major producer of rough diamonds, and India is the leading processing center.
2. Strategic Importance
   • Joint Defence Cooperation: Indo-Russia Rifles under Make in India, BrahMos Missiles are examples of defense cooperation.
   • Joint conduct of R&D: Cooperation in telemedicine, creation of a Traditional Knowledge Digital Library (TKDL), GIAN, etc., enhances research capabilities.
   • Annual Bilateral Meets: Defense-related and strategic developments of mutual interest are discussed at High-Level Bilateral Meetings.
   • Arctic Interests: Russia can effectively serve India’s interests in the Arctic.
   • Countering China: Russia acts as a strategic buffer against Indo-China conflicts.
   • Tactical Modernisation: Russian weapon systems and spare parts are essential for modernizing India’s military.
     • Example: The S-400 defense system is critical for India’s air defense, which is being imported from Russia.
   • Balancing with the West: Relationship with Russia could help improve India’s bargaining power against the West and NATO nations.
   • Afghan Peace Process: India needs sustained engagement with Russia, which is engaged in peace efforts.

Concerns/Issues

1. Economic
   • Negligible Share in Russian Economy: Russia-China economic trade – $100 billion, and India’s share is negligible ($10 billion).
   • US Sanctions: Sanctions have frequently limited the scope of Indian interests in Russia due to American backlash.
   • Chinese Influence: The Russian economy has become dependent on China (OBOR).
   • Long Trade Route: The conventional sea route is one of the longest for India.
2. Strategic
   • US Sanction (CAATSA) Threat: Restricting cooperation with Russia.
   • Emerging Russia-China Nexus: This is potentially detrimental to the relations as Russia becomes more drawn toward Chinese strategic interests, which conflict with Indian interests.
   • Closer India-US: Raises concerns for Russians who view the relationship with the US with skepticism.
   • Ukraine Crisis: India has not taken a side in the crisis, and with a pro-US stance in other engagements, it may be perceived by Russia as a lack of Indian support.
   • Russia’s Rapprochement with Pakistan:
     • Removed arms embargo
     • Mi-35M helicopters
     • Russia-Pak Military Exercise “Friendship 2016”
   • Opposition to QUAD: Russia views QUAD as anti-China and thus does not encourage Indian engagement in it.

India must engage with Russia beyond just the trade of military components. It is important for India to diversify its engagement with Russia to include more trade and cultural relations to balance Russia’s concerns regarding India’s alignment with the US.