Why in the news?
Prime Minister of India officially visited Russia in July 2024 for the 22nd India-Russia Annual Summit.
More about the news
- It marked the resumption of the India-Russia annual summit, as the last annual summit took place in New Delhi in 2021.
- PM’s visit is perceived as a confirmation of India’s strategic ability to pursue a balanced and independent foreign policy and signalling to the West about its strategic autonomy.
Key Outcomes of the Visit
- Trade and Economic partnership: ‘Enduring and Expanding Partnership’ focusing on economics.
- Military cooperation: Agreed to boost joint manufacturing in India of spare parts and components for maintenance of Russian origin arms and defence equipment under Make-in-India program.
- Set the bilateral trade target of USD 100 billion by 2030.
- Promote bilateral settlement system using national currencies.
- Signed Program of India-Russia cooperation in trade, economic and investment spheresin the Russian Far East for the period from 2024 -2029, and cooperation principles in the Arctic zone of the Russian Federation.
- On Ukraine: Peaceful resolution of the conflict around Ukraine through dialogue and diplomacy including engagement between both parties.
- India will open two new consulates in Kazan and Yekaterinburg to help facilitate services for the growing community.
Contemporary Significance of India-Russia Relations
For both Countries
- Strategic: Both India and Russia have a shared concern about China’s rise in their neighbourhood and to prevent the rise of China as a regional hegemon.
- Shared Vision of World Order: Both countries advocate for a multipolar world order, opposing unilateral actions by any single country.
- Military collaboration: It has shifted from a buyer-seller dynamic to joint research, design, and production. E.g. Joint production of Brahmos cruise missile and Kalashnikov AK-203 assault rifles.
- Protecting Strategic autonomy: Robust ties help India and Russia balance their increasing dependence on USA and China respectively, signalling an independent course of foreign policy.
- Russia has approved the sale of Brahmos missiles to Philippines which are meant to deter China in the South China Sea, even in the backdrop of growing Russia-China relations.
- Combatting terrorism: Both countries desire expeditious finalization and adoption of the Comprehensive Convention on International Terrorism in the UN framework
- Multilateral: Both countries cooperate actively in multilateral forums like UN, BRICS, NSG, and SCO.
- E.g., both supported the addition of new member States to the expanded BRICS family.
Significance for Russia | Significance for India |
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Challenges in Indo-Russia relationship
- Challenges to India’s Russia Policy: PM’s visit to Russia has received criticism from Ukraine and the USA on its timing and optics.
- Defense Challenges: The level of interoperability between the Indian and Russian armed forces is low, evidenced by the postponement of Indra exercises in 2022 and 2023.
- No major military deals have been concluded since the S-400 deal to avoid USA sanctions under CAATSA.
- Geopolitical Challenges:
- Economic Challenges: Rising Trade deficit with Russia enjoying a massive surplus. In 2023-24, India's exports to Russia were $4.3 billion, while imports stood at $61.4 billion.
- India-US convergences: India is increasingly aligning with the West, particularly the US, to address its economic modernization needs and the China challenge. E.g. Security relationship such as Quad.
- Growing Russia-China ties: Russia-China has no limits ties with bilateral trade over $240 billion.
- Rapprochement with Pakistan: Russia is keen to expand and deepen bilateral ties with Pakistan as it also supplies discounted oil to Pakistan. Russia also invited Pakistan to join INSTC.
- This has complicated the Rupee-Rouble deal, as Russia’s Indian bank accounts are burdened with surplus Indian Rupees due to stagnated imports.
- Connectivity Challenges: Russian Far East and reviving the Chennai-Vladivostok maritime corridor may only yield limited trade gains as it lacks access to foreign markets restricting trade due to sanctions from Japan and South Korea.
- INSTC has been jeopardized by the recent conflict in Nagorno-Karabakh.
Way Forward
- Enhancing Mutual Trust: Both countries need to reinforce mutual trust amid growing apprehensions about Russia-China and India-US convergences.
- Diversifying trade: Indo-Russia trade should expand beyond oil, incorporating products from traditional sectors such as metallurgy, chemical industry, and space.
- Involvement of the private business sector can make the relationship more broad-based.
- Free Trade Agreement (FTA): India and Russian led Eurasian Economic Union-India negotiations over an FTA should be fast-tracked.
- Implementing Reciprocal Exchange of Logistics Agreement (RELOS): It will simplify military-to-military exchanges for exercises, training, port calls and Humanitarian Assistance and Disaster Relief (HADR) efforts.
- Defence dialogue: Both countries should hold military to military talks to resolve India’s concerns on defence spare parts and maintenance issues.
- Broaden collaboration on bilateral and regional issues: such as collaboration on nuclear power plant in Bangladesh as well as developmental partnerships in Central Asia will add new dimension to ties.
- Strengthening Tier II diplomacy: Strengthening contacts with the new generation as well as academia and stationing Indian correspondents in Russia.
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Potential Implications of the Visits
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