India-Russia Relations

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.

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.