Jul 11, 2024 09:07 PM IST
Prime Minister (PM) Narendra Modi met President Vladimir Putin of Russia at the same time as the North Atlantic Treaty Organization (NATO) celebrated its 75th anniversary, giving a clear signal that India will continue its path of strategic autonomy and choose its friends in accordance with its national interests.
Prime Minister (PM) Narendra Modi met President Vladimir Putin of Russia at the same time as the North Atlantic Treaty Organization (NATO) celebrated its 75th anniversary, giving a clear signal that India will continue its path of strategic autonomy and choose its friends in accordance with its national interests. Putin showed that Russia is not isolated from the global majority. The significance of Indo-Russian ties increases as the international system is in transition from a unipolar one with the dominance of one superpower to a multipolar one where many countries of differing capacity and status have a say and a way in international politics. Both India and Russia are invested in the multipolar system. India is a beneficiary of this current conjuncture with strategic relations with Russia on one side and the Western countries on other, that it can leverage with both sides and play a facilitator to peace in these combative times.
Given the context of the Russia-Ukraine war, PM Modi’s famous 2022 line “this is not an era for war” resonates further when he mentioned “the Global South’s expectation for peace and stability” to Putin. This is echoed in the joint statement on the imperative for peace and solution through negotiations based on international law and the United Nations (UN) Charter and the joint condemnation of terrorism suffered by both sides. The Indo-Russian engagement is demonstrated in multilateral institutions like the UN, the BRICS and Shanghai Cooperation Organisation.
This bilateral engaged with trade and connectivity issues and had more on the plate than the traditional defence agenda. The Russia-Ukraine war put pressure on global food, fuel, and fertiliser prices that spiralled up. India has been able to circumvent this crisis because of its special relationship with Russia, a fact pointed out by PM Modi: India’s imports from Russia in 2023-24 were about $66 billion and increased by another $20 billion in the first quarter of 2024, primarily because of oil and gas imports. This is because of the concessional rates India negotiated on account of western sanctions, which analysts have shown, saved Indian refiners at least $10.5 billion in foreign exchange between April 2022 and May 2024.
Indian exports to Russia stand below par at about $4 billion, which means a significant trade imbalance that concerns both sides who are looking for correction. So, PM Modi has called for a broadening of the basket of Indian exports to every sector including agriculture, pharmaceuticals, manufacturing and services. Trade targets have been set at $100 billion by 2030, which seals the vision for economic cooperation. Importantly, as Interfax has shown, 70% of Russian-Indian trade is carried out in their national currencies.
The Reserve Bank of India’s system of Vostro accounts that countries can operate in India facilitates the development of a bilateral settlement system using national currencies like the rupee and rouble, saving foreign exchange. It is in this context that the two leaders agreed to move ahead on an India-Eurasia Economic Union Trade and Goods Agreement and processes are being put in place to facilitate Russian investment in India.
Given the focus on connectivity, this visit also stepped up the process of vitalising various transport links like the International North-South Trade and Transport Corridor that links Russian cities from St Petersburg to Mumbai via ports in Iran. This route, now operational, cuts down transport costs and time significantly. The Chennai-Vladivostok maritime route, the North Sea route were also discussed at this highest level opening up Russia-India maritime links.
Defence cooperation between the two countries involves Indian imports of Russian defence systems, platforms and equipment, transfer of technologies, joint production and export to third countries. India has been diversifying its defence imports and also seeking indigenous defence manufacturing. Defence imports from Russia have declined over the last decade from 62% to about 45% currently.
Russia’s cooperation with India on nuclear power is set to increase as two new nuclear plants will be added to the existing four. Space cooperation will continue as before as bulk is added to scientific and technical cooperation between the two. Several memorandums of understanding in areas like new joint projects in the Russian Far East where India has already invested in an oilfield earlier; work on elimination of non-tariff barriers; ironing out customs procedures; furthering infrastructure development and investment promotion only deepen economic cooperation and show the diversification and institutionalisation of a long and historic relationship between the two.
The argument that Russia’s ties with China come in the way of India-Russia relations is largely untrue as both are mature and seasoned international players who know how to balance their relations without harming any third party — just as India’s strategic partnerships with the West do not stand in the way of Russia-India relations. Similarly, the US expressing “concerns” on Russia-India cooperation is an unwarranted warning.
The July 8-9 Moscow bilateral showed the camaraderie between the two countries at different levels as PM Modi was honoured with Russia’s highest award, the Order of St. Andrew. Gestures like President Putin’s commitment to send back some Indian nationals who had mistakenly joined the Russian war are signs of the interpersonal level of relationship that Indian and Russian leaders enjoy. The words of the two leaders for this cooperation as “special and privileged strategic partnership” and PM Modi saying Russia is India’s “all-weather friend” have deep meaning.
Anuradha Chenoy is adjunct professor, Jindal Global University, and former professor and dean, School of International Studies, JNU. The views expressed are personal
