Syllabus: GS2/IR
Context
- Russian President Vladimir Putin arrived in New Delhi for the BRICS Summit and held a bilateral meeting with Prime Minister Modi.
Major Highlights
- Spoke about closer trade ties, including implementation of the Programme for Economic Cooperation 2030.
- Discussed steps to increase the bilateral trade target to $100 billion by 2030 and projects on civil nuclear cooperation.
- Prime Minister Modi gifted President Putin a Russian translation of Thirukkural, the classical Tamil poem collection authored by poet and philosopher Thiruvalluvar.
- Critical minerals are emerging as another strategic priority, the two sides are looking at cooperation across exploration, processing and recycling.
- Civil nuclear cooperation: Discussions also touched upon nuclear fuel-cycle cooperation and life-cycle support for existing Russian-designed reactors in India, while keeping alive talks on a second Russian-designed reactor site.
Brief on India-Russia Relations
- Establishment and Timeline:
- 1947: India and the USSR established diplomatic relations just months before India gained independence in August 1947.
- Cold War Period (1947-1991): The USSR emerged as a reliable partner for India, especially during times of Western hostility.
- Both signed the Treaty of Peace, Friendship, and Cooperation (1971) that laid the foundation for a strategic partnership.
- 1991: India recognised the Russian Federation after the dissolution of the Soviet Union.
- 1993: Treaty of Friendship and Cooperation was signed.
- 2000: Declaration of Strategic Partnership.
- Multi-Dimensional Cooperation Framework: India and Russia are bound by a Special and Privileged Strategic Partnership (2010).
- Over the years, it has expanded far beyond traditional military ties, integrating economic, energy, space, and educational cooperation.
- Bilateral Trade: The leaders agreed on a $100 billion bilateral trade target by 2030, up from the current $68.7 billion in FY 2024-25 and 59.863 billion for FY 2025-26.
- Both sides are pursuing a free trade agreement with the Eurasian Economic Union (EAEU) and have established mechanisms to address the trade imbalance.
- Defence and Military Cooperation: Defense cooperation remains the primary pillar of the partnership, having structurally shifted from a traditional buyer-seller relationship toward joint research, development, and co-production under India’s Make in India initiative.
- Russia remains India’s largest arms supplier and India-Russia Inter-Governmental Commission on Military-Technical Cooperation (IRIGC-MTC) continues to coordinate procurement, servicing, and joint R&D programs.
- Nuclear Cooperation: Russia’s state-run nuclear corporation Rosatom delivered the first consignment of nuclear fuel for the third reactor at Kudankulam Nuclear Power Plant in 2025, marking a historic milestone.
- Russia is constructing six reactors at Kudankulam, with two already operational.
- Future discussions include small modular reactors and floating nuclear power plants.
- Energy Partnership: In 2023-24, Russia was India’s fourth-largest trade partner, largely driven by discounted oil imports (over 35% of India’s crude oil basket).
- Payment Mechanism Innovation: The two countries have shifted 96% of commercial transactions to national currencies (rupees and rubles), moving away from dollar-denominated settlements to circumvent Western sanctions.
- Political Support and Multilateral Forums: Russia constantly supports India’s permanent membership in the United Nations Security Council (UNSC).
- Both countries coordinate in BRICS, SCO, and G20 to push for a multipolar global order.
Challenges
- Russia–Ukraine conflict: The prolonged war has complicated India’s diplomatic balancing between its strategic partnership with Russia and its growing relations with the US and European countries.
- Western sanctions on Russia: US and European sanctions create difficulties in payments, banking, logistics, insurance and technology transfers, affecting bilateral trade and investment.
- Defence dependence and diversification: India’s historical dependence on Russian defence equipment creates concerns regarding spare parts, maintenance and timely deliveries.
- Growing Russia–China proximity: Russia’s increasing strategic and economic dependence on China may reduce strategic space to accommodate Indian interests, particularly in the Indo-Pacific.
- Trade imbalance: Bilateral trade has expanded significantly, particularly due to India’s imports of Russian crude oil, but Indian exports to Russia remain comparatively limited, creating a persistent trade imbalance.
- Technology and energy concerns: Sanctions and Russia’s reduced access to Western technology can affect advanced defence cooperation, joint ventures and long-term energy projects.
Conclusion
- The India-Russia partnership has been among the steadiest in the contemporary era with a shared commitment to a multipolar world as well to expand the engagement beyond the traditional military, nuclear and space cooperation.
- Both countries are also looking to strengthen inter-regional cooperation, especially with the Russian Far East and promote connectivity initiatives.
Source: TH
